 Sterling spiked higher overnight after UK Commons voted to reject no-deal Brexit. But there was no follow through buying as the Pound settles back into familiar range quickly. It's indeed the weakest one for today so far, paring some of the gains. Focus will now turn to vote on Article 50 extension today. UK lawmakers finally have a chance to tell the world what they want, rather than what they don't want. Following Sterling, Australian Dollar is the second weakest as weighed down by Chinese data, which suggest the slowdown could last longer. On the other hand, Dollar and Euro and the strongest ones for today. Technically, we'd maintain that sustained break of near term resistance in the Pound is needed to confirm underlying momentum. That is, 1.3350 resistance in GBP/USD, 0.8474 support in EUR/GBP and 148.57 resistance in GBP/JPY. Otherwise, current rise in the Pound is viewed as part of near term volatility only. USD/CHF dropped notably overnight and is now close to 1.0027 minor support. As long as this support holds, we'd expect an eventual break of 1.0128 resistance in USD/CHF as recent up trend resumes. But break will mix up the outlook and turn focus back to 0.9926 support. USD/CAD breached 1.3301 minor support overnight with help from rally in WTI oil. This level will also be watched today too as indication of bearish reversal in USD/CAD. In other markets, Nikkei is currently up 0.21%. Hong Kong HSI is up 0.05%. China Shanghai SSE is down -1.07%, back below 3000 handle. Singapore Strait Times is down -0.23%. Japan 10-year JGB yield is up 0.0061 at -0.04, staying negative. Overnight, DOW rose 0.58%. S&P 500 rose 0.69%. NASDAQ rose 0.69%. 10-year yield rose 0.0006 to 2.611. 30-year yield rose 0.0022 to 3.010, back above 3% handle. |
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