Commodity currencies remain generally pressured on risk aversion today. In particular, New Zealand Dollar is weighed down by poor business confidence data. Australian is not much better after contraction in private capital spending. On the other hand, Yen and Swiss Franc are strongest on falling stocks and treasury yields. Sterling turned mixed after yesterday's brief selloff. Prime Minister Boris Johnson's call to suspend parliament could now be triggering deep political turmoil in the country. Yet, traders are so far calm on the Pound. Technically, major pairs and crosses are so far generally in range. Weakness in Sterling remains in favor. In particular, break of 0.9157 minor resistance in EUR/GBP will bring stronger risk back to 0.9324. Break of 126.54 support in GBP/JPY will extend recent down trend. These two levels will be needed to confirm "committed" selling in the Pound. NZD/USD extends recent down trend to new low at 0.6306. We'd see if that will drag AUD/USD through 0.6677 support too. In Asia, Nikkei dropped -0.09%. Hong Kong HSI is down -0.32%. China Shanghai SSE is down -0.16%. Singapore Strait Times is up 0.17%. Japan 10-year yield is down -0.0146 at -0.286. Overnight, DOW rose 1.0%. S&P 500 rose 0.65%. NASDAQ rose 0.38%. 10-year yield dropped -0.024 to 1.466. 30-year yield dropped -0.031 to 1.938. |
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