 Sterling trades generally lower today after latest YouGov polls showed there is still possibility of a hung parliament after Thursday's election. Though, loss is relatively limited as a Conservative majority remains the base case. For now, focus will firstly turn to FOMC rate decision and economic projections. As Fed is widely expected to stand pat, main market mover would be Fed's new rate projections. At the same time, any news regarding delay in US-China tariffs would also trigger some volatilities. Technically, GBP/USD, EUR/GBP and GBP/JPY should have turned into consolidations for now. At this point, the Pound remains bullish and further rise is in favor after the elections. USD/CHF is now pressing 0.9841 key support. Decisive break there would indicate completion of rebound from 0.9659 and turn outlook bearish for this low. If that happens, the key is to watch whether EUR/CHF accelerates towards 1.0863 support, which signals broad based strength in the Swiss Franc. Or, EUR/USD would rises through 1.1116 towards 1.1179 resistance, which signals weakness in Dollar. In Asia, Nikkei closed down -0.08%. Hong Kong HSI is up 0.75%. China Shanghai SSE is up 0.24%. Singapore Strait Times is up 0.61%. Japan 10-year JGB yield is up 0.0188 at -0.003, eyeing 0% handle. Overnight, DOW dropped -0.10%. S&P 500 dropped -0.11%. NASDAQ dropped -0.07%. 10-year yield rose 0.004 to 1.833. |
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