Risk appetite extended from last week's strong US close into Asian session. Markets cheer the "constructive" US-China trade talks while ignoring escalation in unrest in Hong Kong. Yen is currently one of the weakest together with Swiss Franc. Though, Australian Dollar is also soft among them. On the other hand, Sterling and Euro firm up, with the help from mild softness in Dollar. In particular, the Pound is gearing momentum for an upside breakout as election campaign steps up. Technically, EUR/GBP's decline from 0.9324 is on track to 0.8472 support. With today's rally in Sterling, focuses will be on 1.3012 in GBP/USD and 141.50 in GBP/JPY. Break of two resistance levels will confirm rally resumption and could prompt further Pound buying elsewhere. EUR/USD and EUR/JPY will be looking at 1.1073 and 120.63 minor resistance levels. Break will revive near term bullishness for tests on 1.1175 and 121.46 resistance respectively. In Asia, Nikkei closed up 0.49%. Hong Kong HSI is up 1.28%. China Shanghai SSE is up 0.62%. Singapore Strait Times is up 0.42%. Japan 10-year JGB yield is down -0.0117 at -0.082. |
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