 Yen weakens broadly today following recovery in major treasury yields, as a sign of stabilization in sentiments. Most notably, German 10-year yield closed above -0.6% at -0.585, while US 10-year yield closed above 1.6% at 1.622. Australian Dollar is currently the second weakest, after poor business condition and confidence data. Canadian Dollar is the third weakest. On the other hand, New Zealand Dollar is the strongest for now, followed by Sterling and Swiss Franc. Technically, further rise is expected in Yen crosses in general. But current rebound in USD/JPY, EUR/JPY and GBP/JPY are seen as corrective. Thus, we'll look for signs of loss of momentum ahead. Meanwhile, there could also be more upside in Sterling should today's job data beat expectations again, just like yesterday's GDP data. 0.8891 cluster support in EUR/GBP is the key to confirm underlying momentum in the Pound. We'd remain skeptical if this cluster support is not taken out decisively. In Asia, Nikkei closed up 0.29%. Hong Kong HSI is up 0.04%. China Shanghai SSE is down -0.19%. Singapore Strait Times is up 0.39%. Japan 10-year JGB yield is up 0.0332 at -0.222. Overnight, DOW rose 0.14%, S&P 500 dropped -0.01%. NASDAQ dropped -0.19%. 10-year yield rose 0.072 to 1.622. 30-year yield rose 0.078 to 2.098. |
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