Yen's decline continues today and remains the weakest one for the week. Widening treasury yields is seen as the main driving force behind Yen's selloff. German 10-year yield at 0.186 is now heading back towards 0.2 handle. The rebound on improving outlook is remarkable, considering it closed at 0.096 last week. US yields also followed with 10-year yield closed up 0.018 at 2.711 overnight, reclaiming 2.7 handle. Meanwhile, Japan 10-year JGB yield stays negative at 0.015. Staying in the currency markets, Dollar tried to rally overnight after stronger than expected Q4 GDP. But for the week, it's still down against Europeans. Focus will now turn to ISM manufacturing and PCE inflation. Commodity currencies are trying to recovery today but remains the weakest ones for the week. Europeans are the strongest, led by Sterling. Technically, a focus today is whether European majors will reverse this week's recovery today. EUR/USD and USD/CHF are clearly losing some momentum. Break of 1.1316 and 1.0014 will indicate come back of Dollar. But for now, GBP/USD and GBP/JPY appear safe with their bullish run. Aussie is another one to note as AUD/USD might take on 0.7054 support. EUR/AUD could take on 1.6060 resistance. Break could trigger broad based selloff in Aussie. In Asia, Nikkei closed up 1.08%. Hong Kong HSI is up 0.32%. China Shanghai SSE is up 0.33%. Singapore Strait Times rose 0.27%. Overnight DOW dropped -0.27%. S&P 500 rose -0.28%. NASDAQ dropped -0.29%. 10-year yield rose 0.018 to 2.711. 30-year yield rose 0.014 to 3.083. |
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