Dollar, Swiss Franc and Yen are taking turns to be the strongest, with the greenback having a little upper hand. But they're kept in range against each other. Commodity currencies remain the weakest, with Aussie additionally pressured by strict lockdowns, while Loonie is dragged down by falling oil prices. Euro and Sterling are mixed in the middle. Stock traders appear to be relatively indecisive though, in particular in the US. S&P 500 and NASDAQ managed to reverse all initial decline to closed up. However, major Asian indexes are rather weak, especially in Hong Kong and China. Technically, the overwhelming rally in Dollar this week is, to a certain extent, not overwhelming enough. Gold is just stuck in range around 1780 for now. Considering that it's close to 55 day EMA (now at 1979.58), it's actually rather resilient. To confirm more sustainable rise in the greenback, especially against the equally strong Swiss Franc and Yen, we'd prefer to see firm break of 1770.68 support in Gold to indicate rejection by 1800 handle. Otherwise, we'd maintain a bit of cautiousness in USD/CHF and USD/JPY, as well as EUR/USD. In Asia, at the time of writing, Nikkei is down -0.70%. Hong Kong HSI is down -2.28%. China Shanghai SSE is down -1.66%. Singapore Strait Times is up 0.77%. Japan 10-year JGB yield is down -0.002 at 0.015. Overnight, DOW dropped -0.19%. S&P 500 rose 0.13%. NASDSAQ rose 0.11%. 10-year yield dropped -0.031 to 1.242. |
