As Dollar is digesting this week's yield supported rally today, selling focus is turning to Euro, in particular in crosses. Meanwhile, firmer overall risk sentiment is supporting commodity currencies and Sterling, with Aussie being the stronger one. Yen and Swiss Franc are generally softer on stable risk sentiment. Technically, as Euro turns weaker, we'll pay attention to 1.0811 temporary low in EUR/CHF. Break there will resume the fall form 1.0936 towards 1.0694 low. Also, break of 129.36 minor support in EUR/JPY will align the outlook with GBP/JPY. That is, rebound from 127.91 has completed at 130.45 and deeper fall could be seen back to retest 127.91 low. We'd see if Euro's selloff would accelerate and spread. In Europe, at the time of writing, FTSE is up 0.20%. DAX is down -0.20%. CAC is up 0.05%. Germany 10-year yield is up 0.021 at -0.187. Earlier in Asia, Nikkei dropped -0.31%. Hong Kong HSI dropped -0.36%. China Shanghai SSE rose 0.90%. Singapore Strait Times rose 0.40%. Japan 10-year JGB yield rose 0.0008 to 0.070. |
