 The forex markets are rather calm so far despite deep risk aversion elsewhere. Most notably, US 30-year yield plunged sharply by -0.118 to 2.130, closing in to 2.102 historical low. Major Asia indices are all in red, following selloff in US overnight. Nevertheless, all major forex pairs and crosses are just stuck in yesterday's range. Indeed, Yen and Franc weaken mildly while commodity currencies recover as led by Australian Dollar. Technically, USD/CHF breached 0.9695 key support but quickly recovered again. EUR/CHF also struggled to break through 1.0863 temporary low. There is prospect of a pull back in the Swiss Franc, should sentiments stabilize or SNB step intervention. In case of deeper risk aversion moves, Yen could be in an upper hand, with USD/JPY and GBP/JPY clearly staying in downward trajectory, while EUR/JPY is soft. Sterling could be a focus today with job data featured. In any case, we won't be too convinced of any rebound in the Pound unless 0.9198 minor support in EUR/GBP is taken out. In Asia, currently, Nikkei is down -1.18%. Hong Kong HSI is down -1.58%. China Shanghai SSE is down -0.74%. Singapore Strait Times is down -0.80%. Japan 10-year JGB yield is down -0.0051 at -0.224. Overnight, DOW dropped -1.48%. S&P 500 dropped -1.22%. NASDAQ dropped 01.20%. 10-year yield dropped -0.095 to 1.639. |
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