 Sterling is trading the the biggest loser today as it gapped down on negative Brexit news. It's getting unlikely to have breakthrough in the sticky issue of Irish border at the EU summit this week. Elsewhere risk aversion is back in Asian markets as selloffs in stocks resume. Reactions in the currency markets are back to "normal". Yen is trading as the strongest one followed by Swiss Franc, and then Dollar. Australian and New Zealand Dollar are weakest, following the Pound. At the time of writing, Nikkei is trading down -1.62%, Singapore Strait Times down -0.46%, Hong Kong HSI down -1.18%. China Shanghai SSE is down -0.79% at 2586.26, but it's some way above last week's low at 2536.66. In other markets, Gold trades firmer at 1221 for now, with sight on last week's high at 1226.40. WTI crude oil is mildly higher at 72.11, up 1.08%. Technically, GBP/USD's break of 1.3132 minor support argues that rebound from 1.2921 has completed at 1.3257. Deeper fall is in favor back to 1.2921 support. It's not overwhelmingly bearish for the Pound yet, at least not until EUR/GBP breaks 0.8847 resistance and GBP/JPY breaks 145.67 support. On the other hand, EUR/USD is pressing 1.1534 minor support now and break there is needed to give more evidence on strength of Dollar. |
