Euro surges broadly today as boosted a series of better than expected economic data. GDP beat market expectations and argue that the slowdown wasn't as worse as expected. In particular, strength was also seen in problematic countries like Italy and Spain. Unemployment rate dropped to lowest in more than a decade. Inflation could also be coming back as German CPI accelerated much more than expected. Nevertheless, Euro was just the second strongest, following Sterling. The Pound could been lifted by "talks" that Prime Minister Theresa May is targeting to conclude Brexit negotiation with Labour by mid next week. Australian Dollar remains weakest ones for today as weighed down by China PMI misses. Sustainability of post lunar new year seasonal rebound in Chinese economy is in serious doubt. Canadian Dollar is also among the weakest on surprised GDP contraction in February. Technically, GBP/USD's break of 1.3019 minor resistance now argues that corrective decline from 1.3381 has completed. That in turns argue that rise from 1.2391 is not finished yet. Retest of 1.3019 could be seen soon. GBP/JPY's rebound also suggests that it has defended 143.72 support, and thus retain near term bullishness. In other markets, DOW opens mildly higher and is up 0.10%. In Europe, FTSE is down -0.38%. DAX is down -0.23%. CAC is down -0.38%. German 10-year yield is up 0.0413 at 0.048. Earlier in Asia, Hong Kong HSI dropped -0.65%. China Shanghai SSE rose 0.52%. Singapore Strait Times dropped -0.2%. Japan remains in ultra-long 10 days holiday. |
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