Dollar trades generally lower as markets started another holiday shortened week quietly. With an empty calendar in Asia, focuses were mainly on geo-political news, which weren't very much market moving. For now, commodity currencies are the next weakest following the greenback. Yen and Swiss Franc are the mildly stronger ones. Technically, EUR/USD's breach of 1.1199 resistance suggests resumption of rise from 1.0879. Next target is 1.1281 projection level. However, EUR/JPY struggles to break through equivalent resistance at 122.65. It remains to be seen if Euro could stage a broad based rally. The key might lie on EUR/GBP, which is staying in tight range above 0.8476 minor support. With that, there is no cross confirmation of rebound in Sterling yet, despite rebound in GBP/USD and GBP/JPY. It would be very interactive on how things play out in these pairs. In Asia, Nikkei closed down -0.76%. Hong Kong HSI is up 0.40%. China Shanghai SSE is up 0.85%. Singapore Strait Times is down -0.22%. Japan 10-year JGB yield is down -0.0134 at -0.25. |
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