The forex markets are pretty steady in Asia session today, with major pairs and crosses bounded inside yesterday's range. Sentiment is mixed as investors are awaiting to see Russia would invade Ukraine on February 16, as media reported. But the rally in Gold suggests that investors are getting nervous on the risks. For now, Swiss Franc and Yen are the stronger ones, while Euro and Sterling are soft together with Kiwi. Technically, Euro is starting to look vulnerable as geopolitical risks clearly outweighs prospect of interest rate hike. In particular, we'll pay attention to EUR/CHF's reaction to 1.0439 minor support, as well as EUR/USD's reaction to 1.1265 minor support. Break of these levels will indicate that near term rebound in the two pairs completed. They will then be heading back to 1.0298 and 1.1120 low respectively, with prospects of downside breakout. In Asia, at the time of writing, Nikkei is down -0.37%. Hong Kong HSI is down -0.67%. China Shanghai SSE is up 0.40%. Singapore Strait Times is down -0.35%. Japan 10-year JGB yield is down -0.0006 at 0.218. Overnight, DOW dropped -0.49%. S&P 500 dropped to 0.38%. NASDAQ dropped -0.00%. 10-year yield rose 0.041 to 1.996, after hitting 2.026. |
