British Pound sees a broad rally today, fueled by robust wage growth, indicating that secondary inflationary pressure remains persistent, which will likely force BoE to continue tightening. In contrast, Euro fell sharply due to plunging economic sentiment, leading to a downside breakout in EUR/GBP, resuming its recent downward trend. As it stands, Yen remains the top performer, slightly edging out the Pound. Swiss Franc is not far behind, benefitting from an influx of buyers from Euro. Australian and New Zealand Dollar are underperforming, even falling behind the weakened Euro. Dollar presents a mixed picture, with a recovery against Euro, range trading against commodity currencies, but weak against Sterling, Swiss Franc, and Yen. Technically, with breach of 0.8818 support, USD/CHF is now having 0.8756 (2021 low). Ideally, strong support should be seen from 0.8756 to bring bullish trend reversal, to extend the long term sideway pattern. However, decisive break of 0.8756 will be a strong sign persistent long term bullishness in the France. If realized, that would likely be accompanied by extended fall in EUR/CHF too. In Europe, at the time of writing, FTSE is down -0.10%. DAX is up 0.75%. CAC is up 1.27%. Germany 10-year yield is down -0.015 at 2.627. Earlier in Asia, Nikkei rose 0.04%. Hong Kong HSI is up 0.97%. China Shanghai SSE rose 0.55%. Singapore Strait Times rose 0.46%. Japan 10-year JGB yield dropped -0.0168 to 0.456. |
