Sentiments seemed to have a turn as surge of coronavirus cases in the US pushed California back into lockdown. Asian markets are under some selling pressure. But the more indicative development was the sharp -2.13% decline in NASDAQ overnight. It remains to be seen if tech index is finally giving up its resilience as investors take profits. In the currency markets, Swiss Franc, Dollar and Yen are back in control, rising broadly today. Commodity currencies are generally weak, with Sterling additionally pressured by much weaker than expected GDP rebound in May. Technically, immediate focus will be on 1.2508 minor support in GBP/USD, 133.94 minor support in GBP/JPY, and 0.9067 minor resistance in EUR/GBP. Firm break of these levels will indicate Sterling's recent rebound has completed and would bring deeper selloff in general. 0.6922 minor support in AUD/USD will also be watched and break should finally indicate completion of the corrective rebound from 0.6776. In Asia, Nikkei closed down -0.87%. Hong Kong HSI is down -1.62%. China Shanghai SSE is down -0.83%. Singapore Strait Times is down -0.55%. Japan 10-year JGB yield is down -0.0073 at 0.024. Overnight, DOW rose 0.04%. S&P 500 dropped -0.94%. NASDAQ dropped -2.13%. 10-year yield rose 0.007 to 0.640. |
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