Euro recovers mildly today but stays as one the weakest, along with Dollar, Yen and Swiss Franc. Strong risk-on sentiments pushed major US indices to new records overnight. Commodity currencies are generally strong on the sentiments. Canadian Dollar was additionally lifted by the not-so-dovish BoC statement, but it's awaiting upside breakout in oil price to give it another lift. Sterling is mixed for now, hesitating to push up further, even against Euro. Technically, Euro will be a focus today. So far, EUR/USD is holding above 1.2052 support, EUR/JPY above 125.07 support, EUR/CHF above 1.0737 support. These three pairs are somewhat capping Euro's downside elsewhere. But break of these levels could prompt more broad based selloff. Separately, USD/JPY's break of 103.51 support revives that case that rebound from 102.58 has completed after rejection by channel resistance. Retest of 102.58 could be seen and that could drag the greenback lower elsewhere. AUD/CAD will remain an interesting one to watch, as traders are still undecided on which one to bet more on. In Asia, Nikkei closed up 0.82%. Hong Kong HSI is up 0.05%. China Shanghai SSE is up 1.34%. Singapore Strait Times is up 0.37%. Japan 10-year JGB yield is down -0.0077 at 0.032. Overnight, DOW rose 0.83%. S&P 500 rose 1.39%. NASDAQ rose 1.97%. All were record highs. 10-year yield dropped -0.02 to 1.090. |
