Canadian Dollar rises mildly in early US session after stronger than expected consumer inflation reading. But strength of the Loonie is related limited. It remains one of the worst performing for the week, just next to Australian and New Zealand Dollar. Aussie continues to be weighed down by lockdowns while Kiwi is soft after RBNZ stood pat. Nevertheless, Swiss Franc, Yen and Dollar are just digesting this week's gains, awaiting the next move. Technically, the next move in the forex markets could be triggered by development in stocks. NASDAQ would try to draw support from 55 day EMA (now at 14467.02) again, to resume long term up trend. In that case, Swiss Franc, Yen and Dollar could turn softer. However, sustained break of the EMA will be an early sign of larger reversal and put 14k handle at risk. We could then see buying of the three safe haven currencies come back. In Europe, at the time of writing, FTSE is down -0.35%. DAX is flat. CAC is down -0.67%. Germany 10-year yield is down -0.014 at -0.482. Earlier in Asia, Nikkei rose 0.59%. Hong Kong HSI rose 0.47%. China Shanghai SSE rose 1.11%. Singapore Strait Times rose 0.41%. Japan 10-year JGB yield rose 0.0077 to 0.017. |
