 Dollar and Canadian remain the worst performing major currencies for the week and stay pressured. Both Fed and BoC s are perceived as having more room for rate cuts, comparing to, say, ECB and BoJ. Indeed, as the Wuhan coronavirus continues to spread to the world quickly, markets are seeing 100% chance of another -50bps Fed cut in less than two week's time on March 18. Job data from US and Canada will be the main focuses together, but they're unlikely to alter respective policy paths. Technically, EUR/USD is now pressing 1.1239 key resistance. Decisive break will confirm medium term bottoming at 1.0777 and turn outlook bullish. Nevertheless, break of 1.1095 minor support will suggest rejection by 1.1239 and retain near term bearishness. EUR/CHF is currently staying in range above 1.0584 temporary low despite mild weakness this week. Outlook remains bearish with 1.0737 resistance intact and break of 1.0584 will resume larger down trend. EUR/GBP also fails to break through 0.8786 key resistance so far. Break of 0.8594 support will suggest rejection by 0.8786 and bring retest of 0.8276 low. If happens, selloff in EUR/CHF and EUR/GBP could trigger a pull back in EUR/USD. In Asia, currently, Nikkei is down -2.96%. Hong Kong HSI is down -2.15%. China Shanghai SSE is down -0.98%. Singapore Strait Times is down -1.76%. Japan 10-year JGB yield is down -0.0315 at -0.142. Overnight, DOW dropped -3.58%. S&P 500 dropped to 3.39%. NASDAQ dropped -3.10%. 10-year yield dropped to new record low at 0.899 before closing at 0.926, down -0.066. |
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