Strong risk appetite dominates Asian markets today on trade optimism after WSJ said a deal could be sealed by the end of the month. In particular Chinese Shanghai SSE surged through 3000 handle for the first time since June 2018. Japan 10-year JGB yield also turned positive again at the time of writing. Though, the currency markets are rather quiet as major pairs and crosses are bounded inside Friday's range. Sterling is the strongest one so far while Swiss Franc and Yen are weakest. But the picture could easily change as the session goes. Technically, USD/JPY, EUR/JPY and GBP/JPY are some intraday upside moment on overbought condition. But there is no change in the near term bullish outlook after recent breakout. We'd likely see further upside in these pairs, should German and UK yields rise again in European session. Dollar remains mixed in general. There is prospect for the greenback to regain near term bullishness. But EUR/USD has to break 1.1316 minor support first. AUD/USD needs to break 0.7054 support while USD/CAD needs to break 1.3340 resistance. In other markets, Nikkei is currently up 1.09%. Hong Kong HSI is up 1.16%. China Shanghai SSE is up 2.64% at 3073. Singapore Strait Times is up 0.74%. Japan 10 year JGB yield is up 0.010 at 0.001. |
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