Dollar is recovering mildly today but remains one of the weakest for the week, together with Yen and Sterling. Solid risk appetite, with DOW closing strongly at new record overnight, is keeping the greenback and Yen pressured. Yen appears to be slightly weaker with the sharp rally in treasury yield. The Pound, on the other hand, is struggling with coronavirus and lockdowns in the UK. Aussie and Kiwi are currently the strongest ones for the week. Technically, 127.22 temporary top in EUR/JPY is an immediate focus for today. Sustained break there will confirm resumption of whole up trend from 114.42. A second question is whether that could be accompanied by further rally in EUR/USD, or a rebound in USD/JPY, or both. That could depend on how treasury yields would follow up with yesterday's rise. In particular, 10-year yield could accelerate further up towards channel resistance after yesterday's gap breakout. In Asia, Nikkei closed up 1.60%. Hong Kong HSI is down -0.47%. China Shanghai SSE is down -0.34%. Singapore Strait Times is up 1.63%. Japan 10-year JGB yield is up 0.0227 at 0.043. Overnight, DOW rose 1.44% to 30829.40, new record. S&P 500 rose 0.57%. But NASDAQ dropped -0.61%. 10-year yield rose 0.087 to 1.042. |
