 Yen, Swiss Franc and Dollar strengthen generally today as risk appetite is having a setback after dovish FOMC announcement overnight. While NASDAQ continued to defy gravity and extended the record run, DOW and S&P 500 closed mildly lower. Asian markets are also trading in red as pull back in stocks follow through. As a result, commodity currencies are generally lower for today together with Sterling. Indeed, it should be noted that Aussie is currently the weakest one for the week, followed by Canadian. There is prospect of more risk pull back before weekly close. Technically, while EUR/USD, GBP/USD and AUD/USD edged higher after FOMC overnight, they quickly lost momentum. Focus is now on 1.1241 minor support in EUR/USD, 1.2618 minor support in GBP/USD and 0.6898 minor support in AUD/USD. Break of these level will open up near term corrective falls in these pairs. Nevertheless, Dollar will likely remain weak against Swiss Franc and Yen. In particular, with 0.9456 fibonacci support taken out, USD/CHF is heading to 0.9337 projection level. In Asia, Nikkei closed down -2.82%. Hong Kong HSI is down -1.68%. China Shanghai SSE is down -0.80%. Singapore Strait Times is down -2.95%. Japan 10-year JGB yield is down -0.0132 at 0.011. Overnight, DOW dropped -1.04%. S&P 500 dropped -0.53%. But NASDAQ rose 0.67% to new record high at 10020.35. 10-year yield dropped -0.081 to 0.748. |
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