 Dollar suffers another round off selloff after terribly poor ADP job data, which showed only 27k growth in May. 10-year yield also takes a steep dive breaching Monday's low at 2.081. Gold breaks 1344 and is on track to take on 1346.71 resistance. The poor data adds to speculation that Fed would be forced to at least an "insurance cut" later this year, if job markets worsen. However, we'd like to point out again that Fed Chair Jerome Powell just promised to "act as appropriate" to economic developments. A rebound in unemployment rate of 3.60% isn't a disaster. Meanwhile, tariffs on Chinese imports might not have brought any surge in inflation, but how about Mexican goods? The developments ahead remain fluid. And judging from today's reaction, falling yields and stocks paring gains, a Fed cut shouldn't be something to cheer for neither. For today, Dollar is now the clear loser, followed by Australian Dollar and then Canadian. New Zealand Dollar is the strongest one, followed by Swiss Franc and then Euro. Both the Franc and Yen are picking up momentum again on falling treasury yields. For the week, Dollar is the weakest followed by Yen. Kiwi is the strongest followed by Swiss. Technically, Dollar bears are finally showing some aligned commitment. GBP/USD is set to take on 1.2747 minor resistance and break will at least confirm short term bottoming. EUR/USD has finally overcome 1.1263 resistance will conviction. 1.1448 could be the next destination to determine medium term reversal USD/CHF's break of 0.9879 support already takes the lead in indicating medium term reversal. Next is 0.9716 support. In Europe, FTSE is currently up 0.17%. DAX is down -0.07%. CAC is up 0.24%. German 10-year yield is continuing to make record low, down -0.014 at -0.220. Earlier in Asia, Nikkei rose 1.80%. Hong Kong HSI rose 0.50%. China Shanghai SSE dropped -0.03%. Singapore Strait Times rose 0.61%. Japan 10-year JGB yield dropped -0.0249 to -0.126 | 
No comments:
Post a Comment