Sterling surges broadly in rather mixed markets today. Rebound in cross against Euro is seen as a major reason for the Pound's strength. Australian Dollar is following as the second strongest for now, partly listed by cross buying against New Zealand Dollar. Kiwi and Swiss Franc are, on the other hand, the weakest. At this point, Dollar is still generally soft as focus turns to FOMC rate decision. As noted before, we're not expecting anything spectacular in today's announcements. Dollar could resume prior selloff after this event risk. Technically, GBP/JPY recovers notably after drawing support from 4 hour 55 EMA. Focus is back on 136.62 temporary top and break will resume the choppy rise from 131.68. EUR/JPY is also drawing support from 4 hour 55 EMA at the time of writing. Strong rebound from current level will put focus back to 124.43 resistance and break will resume larger rise. Regaining strength in GBP/JPY and EUR/JPY could help push Yen lower. But USD/JPY needs to break 105.68 minor resistance to signal its following other Yen crosses higher. In Europe, currently, FTSE is up 0.21%. DAX is down -0.12%. CAC is up 0.68%. German 10-year yield is up 0.0041 at -0.503. Earlier in Asia, Nikkei dropped -1.15%. Hong Kong HSI rose 0.45%. China Shanghai SSE rose 2.06%. Singapore Strait Times dropped -0.37%. Japan 10-year JGB yield dropped -0.0050 to 0.021. |
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