 Swiss Franc and Euro are the strongest major currencies in a rather quiet day today. Mild recovery in German bund yield is giving the common currency a little lift. But the main drive in the forex market is Dollar's weakness. The greenback is trading as the worst performing one. Yen follows closely as it continues to pare back last week's gain. Canadian Dollar is the third weakest even though oil price is extending recent corrective rebound. Nevertheless, movements in the Loonie are relatively limited ahead of BoC rate decision later in the week. Technically, for now, EUR/USD is staying in range below 1.1499 near term resistance. Recent price actions from 1.1215 are still viewed as a consolidation pattern. Outlook in EUR/USD will stay bearish unless there is sustained break of 1.1499. Similarly, GBP/USD is also held below 1.2814 resistance, which keeps its outlook bearish. A focus ahead is whether USD/CHF would reversal from 0.9765/8 fibonacci cluster support, and whether USD/CAD would rebound from 1.3327 Fibonacci level. In other markets, at the time of writing, FTSE is down -0.62%, DAX is down -0.70%, CAC is down -0.83%. German 10 year bund yield is up 0.0054 at 0.216. Earlier in Asia, Nikkei rose 2.44% and reclaimed 20000 handle. Singapore Strati Times rose 1.42%. But Hong Kong HSI and Shanghai SSE rose 0.82% and 0.72% respectively only. Investors are cautious as US-China trade talk resumes. Japan 10 year JGB yield rose 0.0173 to 0.016, staying negative. |
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