 Yen and Dollar are pressured for the whole day, and remain so in early US session. Risk appetite in Asian markets was boosted by optimism over US-China trade talks. There is hope that the meetings in Washington this week will eventually yield a memorandum of understanding of some sort, as the foundation to the trade agreement. Nevertheless, we point out that such optimism is not shared among European investors, as major European indices are just mixed. Staying in the currency markets, Euro and Sterling are the strongest ones for no apparent reason. Both will face some tests later this week, including UK job data, German ZEW and Ifo, ECB accounts and Eurozone PMIs. Outlook for German economy is not too upbeat and Bundesbank expect subdued growth at least in first half. The risks of US auto tariffs remain. Meanwhile, there is no way out for Brexit impasse yet. Technically, both gold resumed recent rally by taking out 1326.25 resistance. WTI crude oil also rises further to as high as 56.68 so far. China Shanghai SSE completed a double bottom reversal pattern. In the currency markets, EUR/USD and GBP/USD are still limited below 1.1341 and 1.2958 resistance levels. USD/CHF is held well above 0.9988 support. USD/JPY is kept well above 110.00 support. USD/CAD is holding above 1.3196 support. There is no clear bearishness in Dollar. EUR/JPY and GBP/JPY are held in rage below 125.95 and 144.84 respectively, as consolidation extends. EUR/GBP is also kept above 0.8728 minor support. Overall markets are rather consolidative. In other markets, FTSE is currently up 0.05%, DAX is down -0.06%, CAC Is up 0.32%. German 10-year yield is up 0.0083 at 0.114. Earlier in Asia, Nikkei rose 1.82%. Hong Kong HSI rose 1.60%.China Shanghai SSE rose 2.68%. Singapore Strait Times rose 0.81%. Japan 10-year JGB yield rose 0.002 to -0.019. US market is on President's day holiday today. |
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