Commodity currencies remain generally weak today on mixed market sentiments. On the other hand, Yen, Swiss Franc and Dollar are the strongest. Euro remains soft too, but recovery in crosses, in particular against Sterling, is limiting its downside for the moment. Gold also stabilizes back in prior range after initial selloff. With US markets on holiday, trading could be relatively subdued for the rest of the day. Technically, EUR/GBP's recovery ahead of 0.8861 key support is a signal that selloff is past its climax for now. However, EUR/CHF's fall is extending lower and it's now pressing important near term support at 1.0737. Decisive break there could prompt downside acceleration to 1.0658 support. On the other hand, GBP/JPY is also pressing 140.31 support and firm break could prompt downside acceleration too. We'll see which way the markets would play out, and the reaction to EUR/GBP. In Europe, currently, FTSE is down -0.16%. DAX is up 0.20%. CAC is down -0.09%. Germany 10-year yield is up 0.0154 to -0.525. Earlier in Asia, Nikkei dropped -0.97%. Hong Kong HSI rose 1.01%. China Shanghai SSE rose 0.84%. Singapore Strait Times dropped -0.48%. Japan 10-yaer JGB yield rose 0.0127 to 0.049. |
