 Euro jumps broadly in Asian session today, partly by extended rebound in EUR/AUD, EUR/CAD, and more importantly EUR/CHF. The common currency has clearly left behind the mild dovishness of ECB earlier this week. EUR/JPY also resumed recent rise thanks to broad based weakness in Yen. Stocks markets are mixed but resilience in treasury yields is pressuring the Japanese currency. US 10-year yield close above 2.5 handle overnight and there is prospect of German 10-year yield turning positive again before weekly close. Dollar is softer after comments from Fed officials, reaffirmed the patience stance. A key message was from Bullard that normalization of monetary policy has completed successfully. It's seen as the consensus position among Fed policymakers. This reaffirmed that Fed's default position has changed. That is, before the last hike in December, when there was nothing wrong with data, Fed continued rate hikes. Now, if there is nothing wrong with data, upside or downside, don't move. Kashkari also reminded the markets that Fed has a "symmetric target" and inflation could be allowed to run above 2%. In other markets, Nikkei is current up 0.44%. Hong Kong HSI is down -0.36%. China Shanghai SSE is down -0.44%. Singapore Strait Times is down -0.16%. Japan 10-year JGB yield is up 0.002 at -0.057. Overnight, DOW dropped -0.05%. S&P 500 rose -0.00%. NASDAQ dropped -0.21%. 10-year yield rose 0.027 to 2.504. |
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