 Sterling surges notably today after UK announced new tariff regime after Brexit, allowing 60% of trade to be tariff free. In the background, markets are supported by solid risk appetite, on coronavirus vaccine optimism. New Zealand and Australian Dollar are both strong together with the Pound. On the other hand, Yen, Swiss Franc and Dollar are staying under some selling pressure. Focus will turn to Fed Chair Jerome Powell's testimony. But he's unlikely to provide any inspiration to the greenback. Technically, GBP/JPY's break of 131.41 minor resistance, as well as the 4 hour 55 EMA, suggests that a temporary low is at least formed at 129.27. Focus will be back on 133.18 resistance. Break there will invalidate our bearish view and argue that whole rebound from 123.94 is not finished, Further rise should be seen then to 135.74. AUD/USD is now eyeing 0.6569 resistance with today's rally. Break will resume whole rise from 0.5506 to 0.6670 key resistance level. In Asia, Nikkei closed up 1.49%. Hong Kong HSI is up 2.09%. China Shanghai SSE is up 0.70%. Singapore Strait Times is up 2.05%. Japan 10-year JGB yield is up 0.0108 at 0.001. Overnight, DOW rose 3.85%. S&P 500 rose 3.15%. NASDAQ rose 2.44%. 10-year yield rose 0.104 to 0.744. |
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