 Risk appetite are generally firm globally today and it's best reflected in Germany 10-year yield, which turns positive for the time in more than a week. It's a rather clear indcation of a positive turn in overall sentiments. There is some optimism on US-China trade negotiations, which resume in Washington today. As a US Chamber of Commerce executive indicated, the deal is 90% done. But even if so, we'd agree that the last 10% if hardest and trickiest and there is still chance of either side walking out. Also, the softness in economic data, like the poor US ADP and UK PMI services, are unjustifiably ignored. Technically, EUR/USD looks bottomed at 1.1183 for the near term, ahead of 1.1176 low. Immediate focus is back on 1.1273 minor resistance and break will push it higher to 1.1448. USD/JPY also lost momentum well ahead of 112.31 resistance even though Yen is broadly pressured. It looks like Dollar is turn soft, and will need some support from ISM services, and more so from Non-farm payrolls. In Europe, currently, FTSE is up 0.22%. DAX is up 1.31%. CAC is up 0.63%. German 10-year yield is up 0.0565 at 0.01. Earlier in Asia, Nikkei rose 0.97% top 21713.21, reclaimed 21000. Hong Kong HSI rose 1.22% to 29986.39, just missed 30000. China Shanghai SSE rose 1.24% to 3216.30, above 3200 handle. Singapore Strait Times rose 0.96%. Japan 10-year JGB yield rose 0.0177 to -0.49. |
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