Risk aversion is a main theme today, on situation in Afghanistan, poor China data, and spread of Delta virus. Yen and Swiss Franc rise broadly, and to a lesser extent followed by Dollar. Commodity currencies are all in red, in particular with Aussie pressured by increasing pandemic restrictions. On the other hand, Euro and Sterling and mixed for the moment, awaiting the next move. Technically, EUR/CHF's break of 1.0788 minor support suggests that rebound from 1.0715 has completed much earlier than expected. EUR/JPY is eyeing 128.85 support and break will resume the fall from 134.11. EUR/GBP's recovery also lost momentum after hitting 0.8516. the question now is whether recovery in EUR/USD would be cut short but selling in Euro in crosses. In Europe, at the time of writing, FTSE is down -1.22%. DAX is down -0.48%. CAC is down -0.85%. Germany 10-year yield is up 0.005 at -0.459. Earlier in Asia, Nikkei dropped -1.62%. Hong Kong HSI dropped -0.80%. China Shanghai SSE rose 0.03%. Singapore Strait Times dropped -0.63%. Japan 10-year JGB yield dropped -0.0077 to 0.017. |
