 Dollar rebound strongly today after much better than expected job data. 10-year yield also jumps sharply and is currently up 0.083 at 2.022, back above 2% level. DOW futures, on the other hand, tumble notably. Analysts reactions regarding to the data are divided. Some are more aligned with fed fund futures pricing and are still expecting a rate cut later this month. But some like us, expect that the data is enough for Fed to hold their hands first. We'd argue, with trade war escalation averted and no deep deterioration in data, Fed policymakers would better hold their bullets for now. Technically, now, the question is whether Dollar could take out next resistance level before weekly close. Among them, break of 1.2506 support in GBP/USD will resume the fall from 1.3381. Break of 180.80 resistance in USD/JPY will indicate near term bullish reversal. Break of 1.3145 resistance will also indicate near term bottoming. Meanwhile, break of 1.1181 support will bring focus to 1.1107 low. In Europe, currently, FTSE is down -0.53%. DAX is down -0.55%. CAC is down -0.53%. German 10-year yield is up 0.0512 at -0.345. Earlier in Asia, Nikkei rose 0.20%. Hong Kong HSI dropped -0.07%. China Shanghai SSE rose 0.19%. Singapore Strait Times dropped -0.16%. Japan 10-year JGB yield dropped -0.0067 to 0.162. |
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