The forex markets are relatively mixed this week, in particular Sterling. Pound is staying inside familiar range even though the Parliament finally seized control over Brexit from the government. Focus will turn to Wednesday's indicative votes but it's uncertain whether the government will follow the results. Prime Minister May is still working on getting support for her Brexit deal and could make a come back this week. The eventual outcome remains far from certain. Staying in the currency markets, Australian and Canadian Dollar are so far the strongest ones for today. But there is no sign of range breakout yet. Yen is the weakest one as risk sentiments stabilized, followed by New Zealand Dollar and Swiss Franc. Dollar is mixed despite extended decline in treasury yields. The markets could have probably listened to what former Fed Chair Janet Yellen said. That is, current yield curve inversion doesn't necessarily suggest recession, but just Fed rate cut. Fed funds futures are pricing in more than 70% chance of a cut by December. In Asian, Nikkei closed up 2.15%, recovering much of yesterday's loss. Hong Kong HSI is down -0.15%. China Shanghai SSE is down -1.51%, lost 3000 handle. Singapore Strait Times is up 0.32%. Japan 10-year JGB yield is up 00164 at -0.068, staying negative. Overnight, DOW rose 0.06%. S&P 500 dropped -0.08%. NASDAQ dropped -0.07%. 10-year yield dropped -0.035 to 2.420. |
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