Dollar dropped notably overnight and stays weak in Asian session. Some Fed officials toned down the talk of tapering the asset purchase program, or any monetary stimulus removal. Sterling, on the other hand, is extending this week's rally, after BoE talked down negative interest rates. The forex markets are mixed elsewhere though, awaiting the next move in overall risk sentiments. Oil prices are having a strong rally this week. But stocks appear to be taking a breather for now. Technically, USD/JPY's rejection by the falling channel resistance argues that Dollar's rebound might have completed. Indeed, USD/CHF was also rejected by 0.8918 resistance. A focus will be firstly on 1.3702 resistance in GBP/USD and break will confirm resumption of larger up trend. 0.7819 resistance in AUD/USD is another level to watch, and break will also resume larger up trend. While EUR/USD might also take out 1.2244 minor resistance. It might not be able to break through 1.2348 for the near term, as upside is capped by weakness in crosses, like EUR/GBP and EUR/AUD. In Asia, currently, Nikkei is up 0.99%. Hong Kong HSI is down -0.03%. China Shanghai SSE is down -0.08%. Singapore Strait Times is up 0.47%. Japan 10-year yield is down -0.0040 at 0.033. Overnight, DOW rose 0.19%. S&P 500 rose 0.04%. NASDAQ rose 0.28%. 10-year yield rose 0.006 to 1.138. |
