 Dollar is trying to recover some of the steep losses triggered by much more dovish than expected FOMC economic projections. The greenback is now trading mixed for the day, and it's indeed up against Sterling and Canadian for the week. Free fall in Germany yield is another factor lifting Dollar, with 10-year bund yield below 0.05 handle. Putting in to context, 10-year bund yield hit as high as 1.2 just two days ago. US stocks open flat in very tight range while 10-year yield stays pressured. We'd pointed out that yield curve between 3-month and 10-year is now on the brink of indicating recession. It may take some more time for investors to decide whether Fed's dovish turn is positive or negative to the markets. Back with the currency markets, Sterling suffering another round of selloff as UK Prime Minister Theresa May arrives in Brussels for the EU summit. For now, it's uncertainty how she could get pass Commons Speaker Bercow to hold another meaningful vote for her Brexit deal, get the deal approved, and the secure short Article 50 extension within a week before March 29. Stronger than expected UK retail sales look irrelevant for traders for now. BoE and SNB rate decisions were also largely ignored. Canadian is the second weakest one, followed by Euro. New Zealand Dollar and Australian Dollar are the strongest ones. In Europe, currently, FTSE is up 0.46%. DAX is down -0.76%. CAC is down -0.20%. German 10-year yield is down -0.039 at 0.047. Earlier in Asia, Japan was on holiday. Hong Kong HSI dropped -0.85%. China Shanghai SSE rose 0.35%. Singapore Strait Times rose 0.19%. |
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