 Dollar remains broadly weak, suffering heavy selling pressure after Fed turned dovish yesterday and opened the door for rate cut. Though, Swiss Franc and Canadian Dollar steal the show today on escalating middle tensions. WTI crude oil rises over 4% on news that a US drone was shot down by Iran, (in international airspace according to US, over southern Iran according to Iran). Loonie, also firm on strong inflation reading, was give further lift by oil prices. Fears over military confrontation military confrontation drove safe haven flow into Franc. Staying in the currency markets, Sterling follows Dollar as second weakest after BoE toned down growth outlook a bit after keeping interest rate unchanged at 0.75%. Yen is the third weakest, mainly due to strong rally in stocks. Though, we might see a come back in Yen any time should major treasury yields drop further. New Zealand Dollar is the third strongest, with help from GDP data. Technically, USD/CHF's break of 0.9854 support confirms resumption of recent fall from 1.0237 towards 0.9716 support next. EUR/CHF's break of 1.1119 indicates resumption of fall from 1.1476 and larger down trend from 1.2004. USD/CAD's decline is accelerating towards 1.3068 key support next. EUR/CAD also breaks 1.4877 support for 1.4759 low. EUR/GBP recovers ahead of 0.8871 minor support, keeping Euro's upper ahead against Sterling for now. In other markets, S&P 500 opens sharply higher by 0.9% and would very likely take on record high of 2954.13 soon. US 10-year yield is currently down -0.026 at 1.999, below 2% handle. In Europe, FTSE is up 0.68%. DAX is up 0.94%. CAC is up 0.75%. German 10-year yield is down -0.0333 at -0.319. Earlier in Asia, Nikkei rose 0.60%. Hong Kong HSI rose 1.23%. China Shanghai SSE rose 2.38%. Singapore Strait Times rose 0.80%. Japan 10-year JGB yield dropped -0.0313 to -0.166. |
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