 Euro's rally continues today as, despite some jitters, it appears that EU would agree on a compromised deal of recovery fund. It's reported that after marathon negotiations, the Netherlands, Austria, Denmark and Sweden are satisfied with EUR 390B fund being made available as grants with the rest coming as low-interest loans. EU leaders are still in talks finalizing the deal and the tones sound optimistic. Euro is so far the strongest one today, while Yen is the weakest, as weighed down mildly by poor exports data. Technically, EUR/USD breaks through last week's high of 1.1452 and it's now heading to 1.1496 key resistance. Sustained break there would confirm underlying medium term bullishness, but we'll stay cautious on a rejection. EUR/JPY's choppy rebound from 119.31 is showing some upside acceleration for retesting 124.43 short term top too. A focus will now be on EUR/CHF, which rebounds well ahead of 1.0701 minor support. Break of 1.0797 resistance will solidify near term bullishness for retesting 1.0915 short term top too. In Asia, Nikkei closed up by 0.09%. Hong Kong HSI is up 0.13%. China Shanghai SSE is staging a strong rebound after last week's steep pull back, up 2.88%. Singapore Strait Times is down -0.37%. Japan 10-year JGB yield is up 0.0057 at 0.023. |
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