 Sterling continues to trade as the strongest one on stimulus optimism while Europe majors are also firm. On the other hand, Dollar remains the weakest one, even worse than Japanese Yen. Stock market rally might take a breath again today with US futures pointing to flat open. Major European indices are also mixed. After all, there is still not clear sign of topping in risk markets despite resurgence of coronavirus infections. But, due to lack of fresh inspirations, movements in the markets are relatively muted. Technically, EUR/USD's rally is somewhat lacking follow through momentum, partly thanks weakness in EUR/GBP. Nevertheless, further rise is still mildly in favor to retest 1.1422 short term top. EUR/JPY continues to eye 122.11 resistance and break could bring upside acceleration towards 124.43 short term top. If that happens, EUR/USD could be lifted too. Another immediate focus is 1.3485 support in USD/CAD and break will indicate completion of rebound from 1.3315, and bring retest of this low. This might be an early signal of comeback of commodity currencies. In Europe, currently, FTSE is down -0.43%. DAX is up 1.55%. CAC is up 0.42%. German 10-year yield is down -0.0104 at -0.446. Earlier in Asia, Nikkei rose 0.40%. Hong Kong HSI rose 0.31%. China Shanghai SSE rose 1.39%. Singapore Strait Times dropped -0.63%. Japan 10-year JGB yield dropped -0.0002 to 0.019. |
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