Dollar is paring some gains today after yesterday's rally, but remains the strongest one for the week. A temporary agreement was reached in the US Congress to avert another government shut down. Focus is turning back to trade negotiation with China in Beijing. There is little news regarding the actual mid-level discussions. But words coming out of the White House and Trump have been positive. As of now, Australia Dollar is the strongest one for today, as lifted by another day of rebound in Chinese stocks. Japanese Nikkei also came back from holiday with a strong rise. But upside momentum in Aussie is so far capped by dovish RBA expectations. Canadian Dollar follows as the second strongest one. WTI crude oil drew support from 51.37 support and is recovering, back at 52.8. Yen and Swiss Franc are the weakest ones at this point. Looking ahead, the economic calendar is relatively empty today. Bundesbank head Jens Weidmann, BoE Governor Mark Carney and Fed Chair Jerome Powell will speak. UK Prime Minister Theresa May will also deliver a statement on Brexit in the Commons. Technically, USD/CHF and USD/JPY resumed recent rebound yesterday and are both heading higher. EUR/USD's break of 1.1289 support should now bring deeper fall to 1.1215 low. GBP/USD breached 1.2854 temporary low and further decline is now tentatively in favor, towards 1.2391 low. AUD/USD breached 0.7060 temporary low earlier but quickly recovered. Focus will be on whether it's rebounding from here, or selloff will resume soon. In Asia, Nikkei closed up 2.61%. Hong Kong HSI is up 0.09%. China Shanghai SSE is up 0.53%. Singapore Strait Times is down -0.01%. Japan 10-year JGB yield is up 0.0113 at -0.017, staying negative. Overnight, DOW closed down -0.21%. S&P 500 rose 0.07%. NASDAQ rose 0.13%. 10-year yield rose 0.029 to 2.661. 30-year yield rose 0.023 to 2.999, just failed to reclaim 3% handle. |
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