 The financial markets were generally dominated by positive sentiments last week. Major global economic risks seemed to be receding generally, even though some uncertainties remain. The development was best seen in the strong rally in treasury yields. US 10-year yield closed the week up 0.059 at 2.56, above 2.554 key resistance and pointed to near term reversal. German 10-year bund yield closed up 0.055 at 0.059, positive and highest since late March. Even Australian 10-year yield also closed up 0.070 at 1.965, also highest since late March. Stocks lagged behind though, as DOW, DAX and China Shanghai SSE failing to make new highs. In the currency markets, Yen and and Swiss Franc are the biggest losers of the weak. Dollar followed as third weakest but it's indeed bounded in range against Sterling and Canadian. EUR/USD's recovery also showed little conviction. Australian Dollar was the strongest helped additionally by up trend resumption in iron ore prices. Euro was second strongest, partly helped by rebound in crosses in EUR/CHF, EUR/GBP, EUR/AUD and EUR/CAD earlier in the week. It's doubtful if Euro could sustain the momentum. |
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