The financial markets have responded rather well to Fed's rate hike overnight. The close in major US indexes was strong while Asian stocks also follow higher. Yen is clearly pressured and is extending recent decline, following rally in benchmark treasury yields. On the other hand, Australian and Canadian Dollar are strong. Dollar and Euro are mixed for now, together with Sterling, awaiting BoE rate hike. Technically, EUR/USD traders are still refusing to make up their mind as range trading continues. For now, with 1.1120 support turned resistance intact, downside break out through 1.0805 low is expected, for resuming whole down trend from 1.2348. However, strong break of 1.1120 will be an initial sign of bullish trend reversal, and would bring rebound to 1.1494 structural resistance. But for now, it's unlikely to happen either way soon. In Asia, at the time of writing, Nikkei is up 3.49%. Hong Kong HSI is up 5.86%. China Shanghai SSE is up 2.24%. Singapore Strait Times is up 0.41%. Japan 10-year JGB yield is up 0.0011 at 0.205. Overnight, DOW rose 1.55%. S&P 500 rose 2.24%. NASDAQ rose 3.77%. 10-year yield rose 0.028 to 2.188. |
