 It's a bit unsure whether emergency policy actions by major central banks are calming the markets, or inducing fears. Fed, RBNZ and BoJ surprise the markets by unscheduled announcements today, with measures to counter the impact of coronavirus pandemic. Fed cut interest rate by -1.00% to 0-0.25%, with restart of QE. RBNZ cut -0.75% to 0.25%. BoJ doubles ETF purchases and adds new loan program. Asian stock markets are still hammed, together with US futures. Nevertheless, while Asian indices are weak, they're held above Friday's low so far. The currency markets are relatively steady with Yen slightly higher, followed by Swiss Franc. Commodity currencies are the weakest, as led by Canadian for now. Dollar is mixed in spite of Fed's all-in easing. Technically, USD/CHF and USD/JPY are both worth a watch today. Both failed to break 61.8 retracement of prior near term fall (from 0.9484 to 0.9181 in USD/CHF and from 112.22 to 101.18 in USD/JPY). Break of 0.9411 in USD/CHF and 104.50 in USD/JPY will suggest completion of corrective recovery. Retest of 0.9181 and 101.18 short term bottom will then be seen. In Asia, Nikkei closed down -2.46%. Hong Kong HSI is down -3.58%. China Shanghai SSE is down -2.68%. Singapore Strait Times is down -3.81%. 10-year JGB yield is up 0.024 at 0.011, positive. Gold is staying in range above last week's low at 1504.50. WTI crude oil is also consolidating above last week's low of 27.50. |
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