Sterling surges broadly in European session and it's trading as the strongest one for today so far. There is some support by slightly better than expected wage growth. Also, there could be some buying on expectation for the parliament to take over control on Brexit at a later stage, thus avoiding no-deal scenario. But the rise is probably more due to selloff in EUR/GBP, which breaks 0.8728 minor support. At this point, the Pound has yet to prove is upside momentum. Meanwhile, Dollar and Swiss Franc strengthen broadly today as sentiments turned mixed. Eyes will be on US-China trade negotiations which will resume today. Ministerial meetings will start Thursday, working towards a trade MOU. WTO warned today there is "urgency of reducing trade tensions" as the trade outlook indicted dropped to lowest since 2010. US and China better deliver something concrete to ease investors' worries. For now, New Zealand and Australian Dollar are the weakest ones for today. Technically, GBP/USD is pressing 1.2958 minor resistance and break will indicate completion of recent pull back from 1.3217. In that case, further rise could be seen back to 1.3174 key resistance. EUR/GBP's break of 0.8728 indicate completion of rebound from 0.8167. Deeper fall is now in favor back to 0.8617/20 key support zone. In other markets, DOW futures is currently down -70 pts. FTSE is down -0.61%. DAX is down -0.20%. CAC is down -0.44%. German 10-year yield is down -0.018 at 0.098, below 0.1 handle. Earlier in Asia, Nikkei rose 0.10%. Hong Kong HSI dropped -0.42%. China Shanghai SSE rose 0.05%. Singapore Strait Times dropped -0.19%. Japan 10-year JGB yield dropped -0.0104 to 0.031. |
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