Markets have turned quiet today as focus is shifted to FOMC policy decisions. While a tapering announcement is highly unlikely, there are still prospects of hawkish surprises in the dot plot and the economic projections. In the currency markets, Sterling is currently the worst performing one for the week, followed by Kiwi and then Aussie. Swiss Franc is the strongest, followed by Yen and Dollar. The picture could solidify itself if overall risk sentiments turn sour again after FOMC. Technically, we'd continue to look at the development in US stocks to gauge overall market direction. DOW breached 33741.16 structural support briefly earlier in the week. Subsequent recovery has been rather weak so far. Another take on the support level and a firm break there would confirm that DOW is already in correction to whole medium term up trend from 26143.77 at least. In this case, 38.2% retracement at 32006.99 will be the next target. Such development, if happens, would likely be accompanied by buying in Yen, Swiss Franc and Dollar, and upside breakouts in respective pairs. In Asia, at the time of writing, Nikkei is down -0.74%. China Shanghai SSE is down -0.29%. Singapore Strait Times is down -0.66%. Japan 10-year JGB yield is down -0.0048 at 0.035. Hong Kong is on holiday. Overnight, DOW dropped -0.15%. S&P 500 dropped -0.08%. NASDAQ rose 0.22%. 10-year year rose 0.015 to 1.324. |
