 Yen remains generally firm as Asian session as deep risk aversion carries forward from US markets. Concerns over coronavirus vaccine development was a major factor weighing on sentiments. Dollar turns softer, digesting yesterday's gains, but remains generally firm. Sterling continues to trade as the weakest one and selloff is continuing on no-deal Brexit worries. A focus now will turn to Euro, which looks rather vulnerable against Dollar and Yen. Traders might not want to wait till ECB meeting later in the week to trigger a selloff. Technically, the case of a Dollar reversal is building up. USD/CAD, following GBP/USD and USD/CHF, breaks 1.3239 resistance which indicates short term bottoming. That's helped by the free fall in oil price too. Now, the focus is on EUR/USD, which is pressing 1.1762 support. Firm break there should also confirm short term topping and the start of a correction downwards. At the same time, EUR/JPY is also pressing 124.44 support. Break would likely bring deeper fall to correct whole rise from 114.42. In Asia, currently, Nikkei is down -1.26%. Hong Kong HSI is down -0.97%. China Shanghai SSE is down -1.07%. Singapore Strait Times is down -0.53%. Japan 10-year JGB yield is down -0.0060 at 0.032. Overnight, DOW dropped -2.25%. S&P 500 dropped -2.78%. NASDAQ dropped -4.11%. 10-year yield dropped -0.037 to 0.684. |
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