Canadian Dollar jumps broadly in early US session after stronger than expected consumer inflation data. Australian Dollar follows as the second strongest, with help from risk appetite since European session. Fed Kashkari's push for forward guidance raises expectation that Fed will keep rates low for longer. Yen and Swiss Franc weaken as a result of the strength in stocks. Yet, Sterling is the weakest one so far on Brexit uncertainty. Some more volatility could be seen for the rest of the day. FOMC minutes would reveal the debates behind the rate cut last month. We'd probably seen how dovish Fed policy makers were leading to the cut. Though, chair Jerome Powell's speech at Jackson hole on Friday could be more market moving. On other hand, Italian President Sergio Mattarella will begin his two days talks with political parties after the coalition collapsed with Prime Minister Giuseppe Conte's resignation yesterday. A key would be on whether rivals 5-Star Movement and Democratic Party could form a coalition. Technically, despite the dip in USD/CAD, there is no change in the near term outlook. With 1.3177 minor support intact, further rise is still in favor through 1.3345 at a later stage. USD/CHF recovered ahead of 0.9762 minor support. Focus is back on 0.9821 temporary top and break will resume the rebound from 0.9659. In US, DOW futures is currently up 190 pts and points to extended rebound. FTSE is up 1.16%. DAX is up 1.27%. CAC is up 1.57%. German 10-year yield is up 0.0201 at -0.668. Earlier in Asia, Nikkei dropped -0.28%. Hong Kong HSI rose 0.15%. China Shanghai SSE rose 0.01%. Singapore Strait Times dropped -0.43%. Japan 10-year JGB yield dropped -0.0052 to -0.24. |
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