 Commodity currencies are general under pressure today, following global stock markets lower. Record Q2 GDP contraction in Germany and US are weighing on sentiments. Rebound in jobless claims add to concern of double dip recession. US futures also tumble after President Donald Trump floats the idea of delaying 2020 presidential election. Oil appears to be starting the long-overdue correction. Canadian Dollar is the worst performing one for now, followed by Aussie and Kiwi. Sterling is the strongest, followed by Swiss Franc and then Dollar. Technically, while 40 handle looks vulnerable in WTI crude oil, the larger rise is not in threat yet as long as 38.45 support holds. Current fall might just be part of a sideway consolidation pattern, after failing 42.05 key resistance on first attempt. However, break of 38.45 would signal that deeper correction is underway. Accompanying the falling oil prices, EUR/CAD is extending near term rebound today. As long as 1.5654 support holds, further rise should be seen to 1.5991 short term top and possibly above. In other markets, DOW open down -300 pts in initial trading. FTSE is currently down -2.43%. DAX is down -3.38%. CAC is down 2.15%. Germany 10-year yield is down -0.045 at -0.542, moving further away from -0.5 handle. Earlier in Asia, Nikkei dropped -0.26%. Hong Kong HSI dropped -0.69%. China Shanghai SSE dropped -0.23%. Singapore Strait Times dropped -1.70%. Japan 10-year yield dropped -0.0016 to 0.020. |
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