Dollar's rally is accelerating as markets enter into US session. Swiss Franc and Canadian are following the greenback. But Australian Dollar is the worst, together with New Zealand Dollar. But Yen is also weak, with little help from risk off sentiment. Euro is mixed even though a market inflation gauge, the five-year, five-year forward inflation swap, fell below 2% target of ECB for the first time since March. Technically, following upside break out in USD/JPY earlier today, AUD/USD also breaks through 0.6762 low. Attention will now be on other Dollar pairs to confirm buying. Levels to watch include 1.0700 in EUR/USD, 1.1874 in GBP/USD and 1.3082 in USD/CAD. Break of these levels will confirm underlying momentum in the greenback. In Europe, at the time of writing, FTSE is down -0.40%. DAX is down -0.98%. CAC is down -0.78%. Germany 10-year yield is down -0.0764 at 1.270. Earlier in Asia, Nikkei rose 1.1%. Hong Kong HSI dropped -2.77%. China Shanghai SSE dropped -1.27%. Singapore Strait Times rose 0.06%. Japan 10-year JGB yield dropped -0.0011 to 0.250. |
