 Yen and Swiss Franc are finally showing some strength today. There was no special escalation in US-China relationship as the former refrained from naming the latter as currency manipulator. But recovery attempts in stocks were rather short lived. Selloff in stocks is in tandem with free fall in treasury yields, which is started in Germany yesterday, passed to the US, then back to Germany again today. Commodity currencies are generally back under pressure today. Euro and Dollar are mixed. Technically, EUR/JPY finally broke 122.08 support to resume recent fall from 127.05. We'd maintain the bearish view that 118.62 low is the next target, and will pay attention to sign of downside acceleration. EUR/CHF's recovery also faltered ahead of 1.1292 minor resistance. Thus, there is no confirmation on near term bullish reversal. Focus could be quickly back to 1.1162 key support level. USD/CAD is showing some strength today and could have a take on 1.3521 resistance. Though, whether USD/CAD could firmly breakout from recent range will eventually depend much on BoC rate statement. In other markets, currently, all major European indices, FTSE, DAX and CAC open mildly lower. German 10-year yield is down -0.0024 at -0.16. In Asia, Nikkei dropped -1.21%. Hong Kong HSI is down -0.42%. China Shanghai SSE bucked the trend is gained 0.21%. Singapore Strait Times is down -0.33%. Japan 10-year JGB yield is down -0.0239 at -0.095. Overnight, DOW dropped -0.93%. S&P 500 dropped -0.84%. NASDAQ dropped -0.39%. 10-year yield extended recent steel fall to 2.268, down -0.056. |
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