 Sterling drops sharply today as after poor manufacturing data. Also, political and Brexit uncertainties remain in UK. There are "very strong" rumors that a general election could be called this week that could take place before Brexit date of October 31. Australian Dollar follows as the second weakest for now, then Euro. On the other hand, Dollar rises broadly even though new tariffs between US and China finally took effect over the weekend. Yen is the second strongest as markets turn mixed in quiet trading, with holiday in US and Canada. Technically, USD/CAD's break of 1.3345 finally suggests resumption of choppy rise from 1.3016. Further rally could then be seen back to 1.3432/3564 resistance zone. EUR/USD is on track to 1.0683 projection level as medium term down trend extends. 0.6677 support will be a level to watch to confirm Dollar strength. On the other hand, GBP/USD is targeting 1.2014 low and break will resume larger down trend for 1.1946 low. 0.9157 resistance in EUR/GBP and 126.54 in GBP/JPY will need to be broken, though, to confirm underlying selloff in the Pound. In other markets, currently, FTSE is up 1.30%. DAX is up 0.20%. CAC is up 0.23%. German 10-year yield is up 0.0045 at -0.694. Earlier in Asia, Nikkei dropped -0.41%. Hong Kong HSI dropped -0.38%. China Shanghai SSE rose 1.31%. Singapore Strait Times dropped -0.76%. Japan 10-year JGB yield rose 0.0139 to -0.263. |
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