Yen jumps broadly today as risk appetite continues to recede in Asian session. Investors turned a bit cautious as it's still uncertain when and where US and China would sign the phase one trade agreement. Currently, Swiss Franc is the second strongest, followed by Dollar. On the other hand, New Zealand and Australian Dollars are the weakest one. Sterling is slightly softer as markets await BoE rate decisions. The Pound turned into consolidation after mid-October, with another Brexit delay granted while UK heads for snap election. There is some downside risk in the Pound on dovish BoE economic forecasts. But downside will likely be limited even in that case as traders would stay mostly on the sideline before clearing political and Brexit uncertainties. Technically, EUR/USD's breach of 1.1062 support is a sign of weakness, which suggests completion of corrective rebound from 1.0879. Though, there is no clear sign of corresponding strength in Dollar yet. Ideally, we should at least see a break in 0.9970 in USD/CHF and 1.3208 in USD/CAD to indicate a comeback of the greenback. Meanwhile, USD/JPY seems to be rejected by 109.28/31 resistance. Deeper fall in USD/JPY could drag down other Yen crosses. In Asia, currently, Nikkei is down -0.09%. Hong Kong HSI is down -0.34%. China Shanghai SSE is down -0.30%. Singapore Strait Times is down -0.04%. Japan 10-year JGB yield is down -0.004 at -0.086. Overnight, DOW ended flat. S&P 500 rose 0.07%. NASDAQ dropped -0.29%. 10-year yield dropped -0.052 at 1.814. |
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