Sterling is generally steady today and gyrates in tight range. UK events are the major focuses with BoE Super Thursday featured. UK Prime Minister Theresa May will also visit Brussels to seek alternative arrangements on Irish border backstop. For now, the recovery in the Pound is rather weak. Real strength is indeed seen in Dollar and Yen. Staying in the currency markets, New Zealand Dollar is the weakest one for today, suffering heavy selling after job data miss. Australian Dollar follows after another batch of weak economic data too. Technically, GBP/USD and GBP/JPY could be eyeing 1.2814 and 140.62 support levels. There is still some distance from these two levels. But break will solidify near term bearishness for the pound. Meanwhile, AUD/USD is now close to 0.7076 while EUR/AUD is close to 1.6038. Break of these levels will also solidify near term bearishness for Aussie. In Asia, Nikkei closed down -0.59%. Japan 10-year JGB yield is up 0.0113 at -0.004, staying negative. Singapore Strait Times is up 0.69%. Hong Kong and China are still on lunar new year holiday. Overnight, DOW dropped -0.08%. S&P 500 dropped -0.22%. NASDAQ dropped -0.36%. 10-year yield was flat at 2.702 after dipping to 2.673. |
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