Dollar remains overwhelmingly the strongest one for the week, as boosted by intensified Fed hike expectations. Sterling is trying to catch and trading as the next stronger, with special help from buying against Euro. Australian and New Zealand Dollar are taking turns to be the worst performer. Euro and Swiss Franc are not too far away. Canadian Dollar is just mixed, as support by oil prices. Technically, Yen is displaying some weakness with USD/JPY breaking through 115.05 resistance firmly yesterday. But rally in USD/JPY might not translate into rebound in other Yen crosses. Selling in Yen crosses could come back any time, in particular if risk sentiment turns sour again. The levels to watch include 129.76 in EUR/JPY, 155.38 in GBP/JPY, and 82.13 in AUD/JPY. As long as these levels hold, more downside is still in favor in Yen crosses in general, except USD/JPY. In Asia, at the time of writing, Nikkei is up 2.18%. Hong Kong HSI is down -0.84%. China Shanghai SSE is up 0.05%. Singapore Strait Times is up 0.25%. Japan 10-year JGB yield is up 0.0100 at 0.169. Overnight, DOW dropped -0.02%. S&P 500 dropped -0.54%. NASDAQ dropped -1.40%. 10-year yield dropped -0.041 to 1.807. |
