Lots of important economic data are released today but they're largely ignored. Inflation data from the US and Eurozone are strong. Canada's monthly GDP growth was well above expectation while Eurozone GDP growth turned weaker in Q1. But reactions to them are mild. While the greenback is paring some recent gains, it remains the strongest one for the week, followed by Canadian. Euro is still the worst performer, followed by Sterling and then Swiss Franc. Yen is mixed awaiting the next move. Technically, Dollar appears to be losing much upside momentum, but there is no sign of a turn around. EUR/USD would probably consolidate above 1.05 handle for a while. But outlook will stay bearish as long as 1.0756 resistance holds. Nevertheless, break of 1.2675 resistance turned support in USD/CAD, if happens, could be an early warning that Dollar is turning into a near term consolidation phase. In Europe, at the time of writing, FTSE is up 0.60%. DAX is up 1.15%. CAC is up 0.90%. Germany 10-year yield is up 0.0206 at 0.924. Earlier in Asia, Nikkei rose 1.75%. Hong Kong HSI rose 4.01%. China Shanghai SSE rose 2.41%. Singapore Strait Times rose 0.65%. Japan 10-year JGB yield dropped -0.0310 to 0.219. |
