Australian and New Zealand Dollar are the strongest ones for today so far as the forex markets seem to be cheering positive developments in US-China trade negotiations. The idea of 60-day extension to trade truce is certainly welcomed given the complexity in the deal, in particular enforcement. Data from Japan and Germany also showed both countries avoided technical recession in H2 2018. But such positive sentiment is actually not reflected in the stock markets. Though, for now, Yen is the weakest one for today, followed by Dollar. Over the week, commodity currencies remain the strongest ones, led by New Zealand Dollar. Dollar received some blessing from stronger than expected CPI overnight and it's trading down only against NZD, AUD and CAD. The greenback will look into retail sales and PPI today for some more strength. Yen is the worst performing one, followed by Swiss Franc. Sterling is not too far away and it's awaiting Brexit debate in the Commons. Technically, USD/JPY's stronger than expected rise now puts 114.20/54 resistance into focus. EUR/USD breached 1.1257 overnight but quickly recovered. Similarly, USD/CHF breached 1.0092 resistance but retreated quickly. The greenback is still in favor to rise against the two. GBP/USD is eyeing 1.2832 temporary low. Break there will likely give Dollar a hand. In other markets, Nikkei closed down -0.02%. Hong Kong HSI is down -0.25%. China Shanghai SSE is down -0.05%. Singapore Strait Times is up 0.07%. Japan 10-year JGB yield is down -0.0093 at -0.016, staying negative. Overnight, DOW rose 0.46%. S&P 500 rose 0.30%. NASDAQ rose 0.08%. 10-year yield rose 0.024 to 2.708, reclaimed 2.7 handle. 30-year yield rose 0.012 to 3.034, staying above 3.0 handle. |
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