 Dollar is taking a breather for in early US session but remains the strongest one for the week. Positive development on trade talk with China is providing some support to the greenback, except versus Yen, which is the strongest for today. Sterling is also trying to recover after this week's selloff. There is no clear solution on Irish backstop, just spats between EU and the UK. Meanwhile, Australian Dollar remains the weakest as selloff is extending, Technically, USD/CAD's break of 1.1365 minor resistance suggests short term bottoming at 1.3068. The outlook of EUR/USD, GBP/USD, USD/CHF, AUD/USD and USD/CAD are now aligned. That is, more upside is now in favor in Dollar in general. The only expectation is Yen. EUR/JPY and GBP/JPY are gyrating lower and focus could now be on 124.36 and 140.62 minor support levels respectively. On the data front, US trade deficit narrowed to USD -49.3B in November, versus expectation of -54.0B. Canada building permits rose 6.0% mom in December versus expectation of -0.4% mom. Germany factory orders dropped -1.6% mom in December, versus expectation of 0.3%. In other markets, currently, FTSE is down -0.06%, DAX is down -0.34%, CAC is down -0.10%. German 10-year yield is down -0.009 at 0.164. Earlier in Asia, Nikkei closed up 0.15% at 20875.63. Japan 10-year JGB yield is down -0.0062 at -0.015, staying negative. China, Hong Kong and Singapore were still on lunar new year holiday. |
No comments:
Post a Comment