Euro falls broadly today after worse than expectation PMI data. Aussie and Loonie are also weak as commodity prices pull back. On the other hand, Yen and Swiss Franc are rebounding, following the rather deep pull back in US and European benchmark yields. Stock markets are mixed with European indexes trading in red, but US markets open slightly higher. Technically, EUR/JPY's break of 141.93 minor support suggest rejection by 144.23 resistance, and deeper retreat could be seen. Similarly, USD/JPY and GBP/JPY could also head lower for the near term,, if treasury yields extend pull back. But for now, there is no clear sign of trend reversal, and Yen crosses should resume rally sooner rather than later. In Europe, at the time of writing, FTSE is down -0.45%. DAX is down -1.16%. CAC is down -0.25%. Germany 10-year yield is down -0.205 at 1.435. Earlier in Asia, Nikkei rose 0.08%. Hong Kong HSI rose 1.26%. China Shanghai SSE rose 1.62%. Singapore Strait Times dropped -0.02%. Japan 10-year JGB yield dropped -0.0053 to 0.236. |
