 After much volatility in the past 24 hours, Sterling is staying in familiar range against Dollar, Euro and Yen. UK Prime Minister Theresa May's Brexit deal was voted down by the Commons. That puts Brexit back into the original path. A no-deal vote will be held today and is expected to be rejected too. The breakthrough could come tomorrow with the vote on Article 50 extension. The UK Parliament might finally tell the world what the majority supports, rather then just what they reject. The Pound is currently the strongest one for today. Yen follows as the risk appetites fades again. More importantly, global treasury yields dropped rather notably, likely on safe haven flows. US 10 year yield closed at 2.605, just barely defended 2.6 handle. 30-year yield lost 3.0 handle to close at 2.988. Swiss Franc follows as the third strongest so far. On the other hand, Australian Dollar is the weakest one, partly weighed down by deteriorating consumer sentiment. New Zealand and Canadian Dollar are the next weakest. Technically, GBP/USD, EUR/GBP and GBP/JPY are staying in range. We'd prefer to see the Pound to break out in the same direction in these pairs, sustainably, before confirming the breakout. AUD/USD's dip today might suggests completion of recovery from 0.7003. And the pair could return to this 0.7 handle ahead. EUR/USD's recovery, while strong, is still viewed as a corrective rise. It should start to feel heavy above 4 hour 55 EMA and lose momentum well ahead of 1.1419 resistance. In Asia, Nikkei is down -1.36%. China Shanghai SSE is down -0.37%. Hong Kong HSI is down -0.58%. Singapore Strait Times is down -0.75%. Japan 10-year JGB yield is down -0.0112 at -0.041. Overnight, DOW dropped -0.38%. S&P 500 rose 0.30%. NASDAQ rose 0.44%. 10-year yield dropped -0.038 to 2.605. 30-year yield dropped -0.045 to 2.988. |
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