The forex markets are reversing some of this week moves today, as stock investors are also taking some profits ahead of the weekend. Euro is the better performing so far, followed by Swiss Franc, Dollar and Yen. Meanwhile, Sterling and commodity currencies are the weaker ones. As for the week, Dollar is the weakest together with Yen while Sterling is the strongest with Kiwi. Nonetheless, all major pair are now trading inside prior week's range, except Sterling versus Aussie. Forex traders haven't made up their minds on a direction yet. Technically, Euro has recovered after yesterday's ECB rate decision, and defended near term bottom against Dollar, Yen and Swiss Franc. Focus is back to near term resistance minor resistance level. EUR/USD has already taken out 1.2157 to resume the rebound from 1.2052. EUR/JPY could have a take on 126.19 and break will resume the rebound from 125.07. More importantly, break of 0.8923 minor resistance in EUR/GBP would argue that it has regained 0.8861 key support, keeping near term outlook neutral at worst. In Asia, currently, Nikkei closed down -0.44%. Hong Kong HSI is down -1.30%. China Shanghai SSE is down -0.41%. Singapore Strait Times is down -0.72%. Japan 10-year JGB yield is up 0.0062 at 0.042. Overnight, DOW dropped -0.04%. S&P 500 rose 0.03%. NASDAQ rose 0.55%. 10-year yield rose 0.019 to 1.109. |
