Overall risk sentiments continue to drive the forex markets. Yen, Swiss Franc and Dollar softer following rebound in US and Asian stocks. On the other hand, Australian Dollar is leading commodity currencies and Sterling higher. Still, for the weak, Dollar and Yen remain the biggest gainers while Aussie and Kiwi are the weakest. But the picture could change before weekly close, especially that Sterling might climb up the ladder. Meanwhile, economic data will also be back in focus, with UK retail sales, Germany Ifo business climate and US PCE inflation featured. Technically, USD/CHF's break of 0.9374 suggests resumption of rise from 0.8756. Eyes will be on whether USD/JPY would follow and break through 109.35 resistance to resume the rise from 102.58. Sterling is another focus too, as break of 150.31 minor resistance indicates completion of correction from 152.52. Eyes will firstly be on 1.3800 minor resistance in GBP/USD to indicate completion of correction from 1.4240. Also EUR/GBP could be heading back to 0.8532 support and break will resume larger down trend. In Asia, Nikkei is currently up 1.56%. Hong Kong HSI is up 1.14%. China Shanghai SSE is up 1.37%. Singapore Strait Times is up 0.43%. Japan 10-year JGB yield is down -0.0061 at 0.079. Overnight, DOW rose 0.62%. S&P 500 rose 0.52%. NASDAQ rose 0.12%. 10-year yield closed flat at 1.614. |
