Yen selling takes center stage today, following strong rise in global treasury yields. In particular, US 10-year yield is trading at 0.99 at the time of writing, after hitting 1.037 earlier. Dollar remains generally pressured, and even the recovery against Yen is weak. The surprised contraction in ADP employment is definitely not giving the greenback any support. Australian and New Zealand Dollars are currently the strongest, followed by Euro. Technically, the rise in treasury yield prompted a relatively sharp pull back in Gold, hitting 1925.53. For now, we're not expecting a break of 1906.74 resistance turned support. But break there could help signal some recovery in Dollar elsewhere. We'll see. Before that, EUR/JPY could be a more immediate focus. Firm break of 127.07/22 resistance will resume larger rise from 114.42 to 128.67 medium term fibonacci resistance. In Europe, currently, FTSE is up 2.86%. DAX is up 0.91%. CAC is up 0.67%. German 10-year yield is up 0.0206 at -0.551. Earlier in Asia, Nikkei dropped -0.38%. Hong Kong HSI rose 0.15%. China Shanghai SE rose 0.63%. Singapore Strait Times rose 0.12%. Japan 10-year JGB yield rose 0.0049 to 0.020. |
