Swiss Franc is overwhelmingly the weakest one today with fresh selling in early US session. While Japanese Yen is also weak, it's a relatively distant second. Both are pressured by extended rebound in global stocks. Meanwhile, additional pressure is seen on Franc from strong rebound in oil prices and emerging market currencies. Currently, both USD/TRY and USD/ZAR are down nearly -0.3%. Return of risk appetite is benefiting Australian Dollar most. Investors are cheering the deal in US Congress to avert another government shut down, with funding for 90km of bordering fencing. Also, there seems to be some quiet optimism on US-China trade talks. Though, US Treasurer Steven Mnuchin and USTR Robert Lighthizer arrived in Beijing today for trade talks, without any notable comments so far. Dollar and Euro are mixed for the moment. Sterling also stays mixed as UK Prime Minister delivered her Brexit update in the parliament. The most important thing to note is that if she cannot get an approvable new deal by February 26, the Commons will be given a chance to vote on a plan B on the following day. Technically, USD/CHF's rally is accelerating towards 1.0128 key resistance. Break will confirm medium term up trend resumption. EUR/CHF's break of 1.1376 minor resistance also suggests that pull back from 1.1444 has completed. Further rise is now likely through this level to 1.1501 key resistance. While AUD/USD is strong, upside is so far still capped by dovish RBA expectation. Further decline will remain in favor for the near term as long as 0.7107 minor resistance holds. In Europe, currently, FTSE is down -0.07%. DAX is up 1.03%. CAC is up 0.86%. German 10-year yield is up 0.0204 at 0.143. Earlier in Asia, Nikkei rose 2.61%. Hong Kong HSI rose 0.10%. China Shanghai SSE rose 0.68%. Singapore Strait Times dropped -0.16%. Japan 10-year JGB yield rose 0.0184 to -0.009, staying negative. |
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