Sterling ended the week as the best performing one. But the late selloff, and rejection by resistance against Dollar and Yen, suggest that the latter too were in the driving seat. Weakness was apparently see in Euro, New Zealand Dollar, and to a lesser extent Australian. Dollar could be further building up the case for stronger near term rebound. But some more technical levels need to be taken out to confirm. Overall markets were pretty mixed though, acting like something are turning the corner. US President-elect Joe Biden's new stimulus package triggered no bullish response from stock investors. But the late pull back didn't warrant a deep correction yet. At the same time, persistent strength was seen in Asia, in particular in Nikkei and HSI. US yields failed to accelerate through channel resistance sustainably, but there is no sign of topping. Gold tried to recover but lacked follow through buying. |
