Dollar retreats mildly in Asian session today as overall market sentiments improved some what. Major Asian indices, except China, recovered notably, following DOW's rally. But weakness in US tech is keeping upside capped. Selloff in Yen and Swiss Franc, and to a lesser extend Kiwi, is still the main theme, on resilience in global treasury yields. Sterling is attempting to take over Dollar's top spot, while Aussie could catch up any time. Technically, GBP/JPY's rally picks up momentum again and it's on track to 151.80 projection level. But this cold be a tough one to take out as it coincides with medium term channel resistance. The cross will likely need simultaneous strength in the Pound as well as weakness in Yen to push through this resistance. With that in mind, we'll pay special attention to 0.8537 support in EUR/GBP to gauge the upside potential in GBP/JPY beyond 151.80. In Asia, currently, Nikkei is up 0.91%. Hong Kong HSI is up 1.44%. China Shanghai SSE is up 0.13%. Singapore Strait Times is up 1.16%. Japan 10-year JGB yield is up 0.0128 at 0.135. Overnight, DOW rose 0.97%. S&P 500 dropped -0.54%> NASDAQ dropped -2.41%. 10-year yield rose 0.042 to 1.596. |
