The forex markets turn into consolidative mode in Asian session. Yen recovers mildly, digesting the recent steep selloff. But there is no clear sign of bottoming in the Japanese currency yet. Commodity currencies are also retreating mildly, following some mild selloff in stocks. Euro and Dollar are mixed while Gold is struggling in tight range around 1750. WTI crude oil is also paring some gains but stays firm above 80 handle. Technically, as Yen crosses are probably turning into consolidation, focus will be turned to interplay between Euro and Sterling. Some movements could be triggered in EUR/GBP buy UK job data and German ZEW today. EUR/GBP has lost some downside momentum after edging lower to 0.8471, kept well above 0.8448 low. Recovery from the current level and break of 0.8525 minor resistance would bring stronger rebound. The question is, if that happens, whether EUR/USD would rebound through 1.1539 minor resistance, or GBP/USD would drop through 1.3542 minor support. In Asia, at the time of writing, Nikkei is down -0.93%. Hong Kong HSI is down -1.12%. China Shanghai SSE is down -1.13%. Singapore Strait Times is down -0.64%. Japan 10-year JGB yield is down -0.005 at 0.092. Overnight, DOW dropped -0.72%. S&P 500 dropped -0.69%. NASDAQ dropped -0.64%. 10-year yield rose 0.009 to 1.614. |
