Overall market sentiment is stable, with major Asian indexes mixed, following the recovery in US stocks overnight. Yen and Dollar soften slightly after turning into consolidations, but Swiss Franc is still strong. Commodity currencies are mixed with no follow through buying with the current rebound attempt. In other markets, Gold is struggling in tight range below 1800 handle. WTI crude oil is flip-flopping around 70 handle, with no momentum for a sustainable rebound. Technically, we'll be looking at the development in both EUR/USD and USD/JPY closely. As for EUR/USD, recovery from 1.1185 remains capped below 1.1373 minor resistance, and thus keeps near term outlook bearish. However, break of 1.1373 could solidify upside momentum in Euro in crosses, in particular in EUR/GBP, EUR/CAD and EUR/AUD. Meanwhile, USD/JPY is still holding above 112.71 support. But a firm break there could prompt deeper selling in other Yen crosses. In Asia, at the time of writing, Nikkei is up 0.43%. Hong Kong HSI is down -1.09%. China Shanghai SSE is up 0.23%. Singapore Strait Times is down -0.56%. Japan 10-year JGB yield is down -0.0026 at 0.072. Overnight, DOW rose 0.68%. S&P 500 rose 1.32%. NASDAQ rose 1.88%. 10-year yield rose 0.048 to 1.530. |
