 Dollar suffers steep selloff in early US session after shockingly poor retail sales data. The release of December's sales was delayed due to government shutdown. And we've finally got some clues on how bad the US economy performed on double whammy on shutdown and trade war. Nevertheless, for now, Canadian Dollar is even worse as pressured by poor manufacturing sales. Sterling follows as second weakest as Brexit debate resumes in the Commons. Dollar is just the third weakest. New Zealand Dollar remains the strongest one for today, feeling the residual support from RBNZ. Euro overtakes Australian Dollar as the second strongest. Germany GDP stagnated in Q4 but after all, it did avoid a technical recession, same as Japan. Yen is trying to fight back as stocks are possibly reversing. We pointed out earlier that stocks and bonds had no positive reaction to the so-called positive news regarding US-China trade talks. Both China and Hong Kong stocks closed lower. Japan JGB yield ended with a decline. German 10-year yield is also currently down. Is a 60-days extension in trade truce something good for the economy? Remember that the current tariffs will likely be in place in case of extension. Such an act is only prolonging the damages. Technically, EUR/USD and USD/CHF looks set to turn into consolidation after Dollar's pull back. GBP/USD is still in near term decline. AUD/USD is staying in near term consolidation. USD/CAD looks set to resume rebound from 1.3068 and focus is immediately on 1.3329 resistance. EUR/GBP is eyeing 0.8821 resistance and break will resume rebound from 0.8617. The most interesting development is in USD/JPY. Deep decline now argues that prior stronger than expected rise was just false dawn. We'll see. In other markets, FTSE is currently up 0.30%. DAX is down -0.11%. CAC is up 0.39%. German 10-year yield is down -0.035 at 0.092, below 0.1 handle. Earlier in Asia, Nikkei dropped -0.02%. Hong Kong HSI dropped -0.23%. China Shanghai SSE dropped -0.05%. Singapore Strait Times rose 0.26%. Japan 10-year JGB yield dropped -0.0039 to -0.01, staying negative. | 
No comments:
Post a Comment