Direction isn't very clear in the financial markets today as they're generally in consolidative mode. Sterling was lifted briefly overnight by UK Prime Minister Theresa May's new Brexit plan. But it was quickly back to square one after the plan was overwhelmingly rejected by MPs. For now, Canadian Dollar is so far the strongest one for the week but it has yet to break out from recent range against Dollar. Australia Dollar had a roller-coaster ride but stays above 0.6864 temporary low against Dollar. Yen pulled back mildly this week but there is no follow through selling, except versus Dollar. Though, the greenback also struggles to extend gains against Euro. Stocks are also in consolidation mode on trade war concerns. The move to suspend Huawei ban gave sentiments a brief lift only. After all, there is no sign of a breakthrough in trade talks and we're not expecting Trump nor Xi to back down on their stance. Despite yesterday's near 200pts recovery, DOW is staying below 55 day EMA while keep risks on the downside. China Shanghai SSE is also flip-flopping around 2900 handle. Technically, after yesterday's brief spike, focus is back on 1.2685 temporary low in GBP/USD and 0.8789 temporary top in EUR/GBP. Break will resume recent selloff in Sterling. AUD/USD is still eyeing 0.6864 temporary low for decline resumption. A focus today is on whether Canadian retail sales can push USD/CAD outlook of range of 1.3376/3521. In Asia, currently, Nikkei is up 0.12%. Hong Kong HSI is up 0.17%. China Shanghai SSE is down -0.43%. Singapore Strait Times is up 0.22%. Japan 10-year JGB yield is down -0.0053 at -0.05. Overnight, DOW rose 0.77%. S&P 500 rose 0.85%. NASDAQ rose 1.08%. 10-year yield rose 0.010 to 2.426. |
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