Russia's invasion of Ukraine remain the dominant theme in the markets, and Euro and Sterling stay pressured as a result. Swiss Franc is the biggest winner for now on safe haven flow, but Aussie and Yen are also supported. On the other hand, Dollar is dragged down by the steep fall in treasury yield overnight. Canadian Dollar is mixed and BoC rate hike is unlikely to give it much boost. In other markets, WTI crude oil surged again and breached 110 handle. Gold is staying firm above 1900 for now, but still lacks follow through buying. Asian stocks are weak, following the selloff in US overnight. Technically, EUR/CHF is now pressing 61.8% projection of 1.0936 to 1.0298 from 1.0610 at 1.0216. Sustained break of this level could prompt downside acceleration to 100% projection at 0.9972, i.e. below parity. If that happens, the selloff could easily be spread to some other pairs, including EUR/USD, EUR/JPY, EUR/CAD and EUR/AUD. In Asia, Nikkei closed down -1.68%. Hong Kong HSI is down -1.23%. China Shanghai SSE is down -0.21%. Singapore Strait Times is down -0.58%. Japan 10-year JGB yield is down -0.0431 at 0.138. Overnight, DOW dropped -1.76%. S&P 500 dropped -1.55%. NASDAQ dropped -1.59%. 10-year yield dropped -0.132 to 1.707. |
