It's a very volatile day with two market moving events in BoE Super Thursday and EU economic forecasts. Sterling initially dived sharply after BoE downgraded economic forecasts and painted a slower rate path. But the Pound appears to rebound after BoE Governor Mark Carney insisted that the markets shouldn't prepare for a rate cut despite the weaker outlook. Nevertheless, with never-ending Brexit uncertainty and a more dovish BoE, there is no special reason to cheer the Pound for now. At the time of writing, Canadian Dollar is the weakest one for today as selloff accelerates in early US session. New Zealand Dollar is the second weakest after today's job data miss. Euro is the third weakest after EU slashed Eurozone 2019 growth forecasts by -0.6% to 1.3%. Sterling's rebound also weighs on Euro. But it should be noted that the race to be the worst performer today hasn't ended yet. The picture could change again before tomorrow. Though, Yen is the strongest one today, followed by Swiss Franc. These two will likely hold their places, on risk aversion, and falling global treasury yields. Technically, an immediate focus now is 124.36 minor support in EUR/JPY. Firm break there will be an indication that rebound from 118.62 flash crash low has completed. And near term outlook will be turned bearish for deeper decline back towards 118.62. EUR/GBP is now looking at 0.8726 minor support. Break there will indicate completion of rebound from 0.8617 and turn focus back to 0.8620 key support level. In Europe, currently, FTSE is down -0.40%. DAX is down -1.79%. CAC is down -1.01%. German 10-year yield is sharply lower by -0.0352 at 0.131. Earlier in Asia, Nikkei dropped -0.59%. Japan 10-year yield closed up 0.0069 at -0.009, staying negative. Singapore Strait Times rose 0.50%. Hong Kong and China were still on holiday. |
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