Euro tumbled broadly overnight, riding on dovish comments from ECB President Christine Lagarde. In short, Lagarde continued to talk down the need of early stimulus withdrawal and warned of the hurt to recovery for doing so. Swiss Franc is currently the second weakest, followed by Yen. On the other hand, commodity currencies are the stronger one as led by Aussie, even though stock rally attempt faltered overnight. Technically, EUR/USD is now approaching a key target and support level at around 1.13 handle. EUR/CHF is also pressing 1.0505 key support level of 2020 low. We'd pay attention to bottoming signals around these two levels, at least on first attempt. However, sustained break of the levels in both pairs will carry large bearish implication and could prompt even steeper, broad based, selloff for the medium term. In Asia, at the time of writing, Nikkei is trading up 0.06%. Hong Kong HSI is up 0.94%. China Shanghai SSE is down -0.18%. Singapore Strait Times is down -0.01%. Japan 10-year JGB yield is up 0.0114 at 0.079. Overnight, DOW dropped -0.04%. S&P 500 dropped -0.00%. NASDAQ dropped -0.04%. 10-year yield rose 0.041 to 1.623. |
