 Risk appetite firms up mildly today as lifted by US Treasury Secretary Steven Mnuchin's upbeat comments regarding trade negotiation with China. There are also reports that US would delay new tariffs without deadline, to bring China back to negotiation table. However, the positive lift is capped after Trump reiterates his tariff threats to China. Overall, the markets remain cautiously optimistic on the results of the Trump-Xi meeting in Osaka later this week, but also stay on guard. In the currency markets, New Zealand Dollar remains the strongest one for today, followed by Australian and then Canadian Dollar. Yen and Swiss Franc are the weakest ones on mild risk appetite. Dollar and Euro are mixed. As Dollar recovered since yesterday, after Fed officials dismissed aggressive rate cut in July, Gold is also in retreat, back below 1410. Technically, USD/CAD is trying to resume recent decline by breaking 1.3151 temporary, as WTI oil is also resuming recent rise. USD/CAD should be targeting 1.3068 support next. EUR/GBP is still pressing 0.8974 resistance and break will resume recent rally for 0.9101 key resistance. While Dollar recovered, it's still holding below near term resistance against Euro, Sterling, Swiss Franc, Yen and Aussie. More downside remains mildly in favor in the greenback. In Europe, FTSE is currently up 0.10%. DAX is up 0.37%. CAC is up 0.06%. German 10-year yield is up 0.0088 at -0.32. Earlier in Asia, Nikkei dropped -0.51%. Hong Kong HSI rose 0.13%. China Shanghai SSE dropped -0.19%. Singapore Strait Times dropped -0.09%. Japan 10-year JGB yield rose 0.0062 at -0.145. |
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