Dollar trade mildly lower in Asian session after more verbal attack on Fed by Trump. Australian Dollar follows as second weakest, paring some of last week's gains. On the other hand, New Zealand Dollar is the second strongest one, followed by Sterling. But after all, all major pairs and crosses are bounded inside Friday's range only. The picture could change drastically as the day goes. Risk appetite firm up mildly on more optimism over US-China trade deal. Comments from US Treasurer Steven Mnuchin were affirmative. Reports that US is conceding demand on subsidies to State Own Enterprises make the progress more credible. To solidify risk rallies, economic data from Eurozone and China this week will need to show more evidence of stabilization. Technically, Yen pairs will be the immediate focuses. USD/JPY is pressing 112.13 resistance. Firm break will resume whole rise from 104.69 flash crash low. Similarly, EUR/JPY pressing 126.78/127.50 resistance zone. Break will resume larger rise from 118.62. GBP/USD, GBP/JPY, EUR/GBP, EUR/AUD and USD/CAD are staying in established range. These pairs will be watched for signs of breakout. In Asia, currently, Nikkei is up 1.46%. Hong Kong HSI is up 0.58%. China Shanghai SSE is up 1.12%. Singapore Strait Times, however, is down -0.07%. Japan 10-year JGB yield is up 0.0161 at -0.032. |
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