 Sentiments had a drastic turn yesterday as both Brexit and US-China trade talks appeared to show some lights. Sterling rebounded strongly on hope there would finally be a deal to orderly Brexit on October 31. The Pound is set to end the week as the strongest one. Euro is currently the second strong, but clearly overpowered by Sterling. On the other hand, stocks jump as the US-China trade talks went well. Yen and Swiss Franc are deeply sold off, followed by Dollar. Technically, Sterling staged a strong come back against Dollar, Euro and Yen. Focuses are immediately back on 1.2582 resistance in GBP/USD, 135.74 resistance in GBP/JPY and 0.8786 support in EUR/GBP. Though, some more positive news is likely needed to push the Pound through these important near term levels. Australian and Canadian Dollar recovered against both Euro and Dollar today. But AUD/USD, EUR/AUD, USD/CAD and EUR/CAD are all seen as staying in consolidations only. Selloff in the two currencies could resume any time as consolidations complete. In Asia, currently, Nikkei is up 1.11%. Hong Kong HSI is up 2.51%. China Shanghai SSE is up 0.66%. Singapore Strait Times is up 0.74%. Japan 10-year JGB yield is up 0.0290 at -0.183, back above -0.2 handle. Overnight, DOW rose 0.57%. S&P 500 rose 0.64%. NASDAQ rose 0.60%. 10-year yield rose 0.065 to 2.152. |
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