Canadian Dollar surges in early US session after much stronger than expected consumer inflation data, which supports more aggressive tightening by BoC. Other commodity currencies are also strong. On the other hand, Dollar is trading broadly lower as recent rally lost momentum, in particular against Yen. Euro is also soft, together with Sterling and Swiss Franc. In other markets, European stocks are trading mildly higher while US futures point to higher open. Global benchmark treasury yields are paring recent sharp gains. Technically, a focus for the rest of the day would be on whether Canadian Dollar could extend the post CPI rise. As for USD/CAD, it will need to break through 1.2519 minor support. EUR/CAD will need to break through 1.3541 temporary low to resume recent down trend. Similarly, GBP/CAD will also break through 1.6292 temporary low to resume down trend. In Europe, at the time of the writing, FTSE is up 0.21%. DAX is up 1.22%. CAC is up 1.44%. Germany 10-year yield is down -0.045 at 0.868. Earlier in Asia, Nikkei rose 0.86%. Hong Kong HSI dropped -0.40%. China Shanghai SSE dropped -1.35%. Singapore Strait Times rose 0.85%. Japan 10-year JGB yield rose 0.0069 to 0.248. |
