While the US stock extended the near term steep pull back overnight, Asian markets are relatively steady and are just mixed. Major currency pairs and crosses are also stuck in tight range for consolidation. As for the week, Swiss Franc and Yen are the stronger ones on risk off sentiment, on both Omicron and talk of Fed's quicker tapering. Sterling is currently the worst performing, followed by Aussie. Dollar is mixed as it's partly weighed down by weakness in treasury yields. Technically, we're still looking at breakthroughs in both EUR/USD and USD/JPY. Break of 1.1382 minor resistance in EUR/USD will confirm short term bottoming and bring stronger rebound. On the other hand, firm break of 112.71 support in USD/JPY will extend the correction from 115.51 to 110.57 fibonacci level. Both developments, if happen, will at least confirm near term weakness in the greenback. In Asia, at the time of writing, Nikkei is down -0.66%. Hong Kong HSI is up 0.39%. China Shanghai SSE is down -0.02%. Singapore Strait Times is down -0.24%. Japan 10-year JGB yield is down -0.0022 at 0.064. Overnight, DOW dropped -1.34%. S&P 500 dropped -1.18%. NASDAQ dropped -1.83%. 10-year yield dropped -0.009 to 1.434. |
