 Global stocks strength in general as major coronavirus epicenters seem to be starting to flatten the curve. It's reported that Germany is even planning for lockdown exit. However, it remains uncertain when this coronavirus pandemic is going to end, and the world would return to normal. Risk in second wave of infections in Asia could be increasing with Japan preparing to enter state of emergency. South America is also a area of concern, with steadily rising cases in Brazil. In the currency markets, New Zealand Dollar is leading commodity currencies higher for now. Yen is the weakest one, followed by Euro and then Swiss Franc. Gold is following risk markets higher, with mild weakness in the greenback too. Technically, EUR/USD is still on track to retest 1.0635 low, and will remain so as long as 1.0902 minor resistance holds. GBP/USD recovers ahead of 1.2144 minor support, keeping it in range. EUR/GBP, on the other hand, reverses after brief recovery. Focus is back on 0.8747 fibonacci support. Break could bring deeper fall back to 0.8282 support. In the US, DOW open up more than 700 pts in initial trading. In Europe, currently, FTSE is up 2.48%. DAX is up 4.94%. CAC is up 3.82%. German 10-year yield is up 0.0226 at -0.416. Earlier in Asia, Nikkei rose 4.24%. Hong Kong HSI rose 2.21%. Singapore Strait Times rose 3.40%. China was on holiday. Japan 10-year JGB yield rose 0.0135 to 0.005. |
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