 Dollar was shot up overnight as Fed's rate cut was, overall, less dovish as expected. At least, Chair Jerome Powell clearly indicated that it's not the start of a lengthy easing cycle. The greenback remains firm in Asian session, together with Australia and New Zealand Dollar. The latter two was lifted mildly by improvement in Chinese manufacturing data. On the other hand, Yen is kept weak, struggling between contrasting force of risk aversion and receding rate cut bets. Sterling is the second weakest, awaiting BoE Super Thursday. Technically, EUR/USD's strong break of 1.1107 low confirms resumption of down trend from 1.2555 (2018 high). It's a key indication of Dollar strength. The development was also accompanied by break of near term resistance of 0.9951 in USD/CHF and 108.99 in USD/JPY. Further broad based rally in Dollar in now in favor. Sterling appears to have stabilized, as seen in pull back in EUR/GBP and recovery in GBP/JPY. Climax of selloff should have passed for now, awaiting next trigger from Prime Minister Boris Johnson. In Asia, currently, Nikkei is down -0.17%. Hong Kong HSI is down -0.68%. China Shanghai SSE is down -0.78%. Singapore Strait Times is down -0.12%. Japan 10-year JGB yield is up 0.009 at -0.145. Overnight, DOW dropped -1.23%. S&P 500 dropped -1.09%. NASDAQ dropped -1.19%. 10-year yield dropped -0.040 to 2.021. |
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