The markets are still staying in overall risk-off mode this week so far, with selloff in stocks, gold, oil and cryptos. Commodity currencies are trading broadly lower as as result, led by Aussie. Dollar and Yen are generally firmer, but they're outshone by the surprisingly resilient Euro, and to a lesser extent Sterling. Technically, with the addition help of extended rally in EUR/CHF, Euro is making some progresses in turning around. EUR/CAD is now in a near term rebound for 38.2% retracement of 1.4633 to 1.3383 at 1.3861. Sustained break there will raise the chance of medium term bottoming at 1.3383. Nevertheless, EUR/USD will also need to break through 1.0756 resistance to confirm the overall upside momentum in Euro. A break through 1.0470 low in EUR/USD could quickly drag EUR/CAD back to 1.3383 low instead. In Asia, at the time of writing, Nikkei is down -0.87%. Hong Kong HSI is down -2.83%. China Shanghai SSE is up 0.17%. Singapore Strait Times is down -1.32%. Japan 10-year JGB yield is up 0.0013 at 0.252. Overnight, DOW dropped -1.99%. S&P 500 dropped -3.20%. NASDAQ dropped -4.29%. 10-year yield dropped -0.044 to 3.079. |
