Clear direction is yet to be established in the forex markets this week, with the exception of Yen's continued depreciation, albeit at a slow pace. Canadian Dollar's rally, spurred by CPI data, was abruptly halted due to worsening risk sentiment, marked by DOW's over -330pts drop. US Treasury Secretary Janet Yellen amplified her warning about the urgent need to increase the debt limit, cautioning that failure to do so could result in "a number of financial markets break – with worldwide panic triggering margin calls, runs and fire sales." Currently, most major pairs and crosses remain within last week's range, with the exceptions of USD/JPY, GBP/CAD, and AUD/CAD. Yen, Dollar, and Euro are showing weakness, while New Zealand Dollar, Canadian Dollar, and Swiss Franc are demonstrating strength. Aussie and Sterling are mixed. Considering the sparse economic calendar for today and tomorrow, trading may continue to be subdued. However, Australian Dollar could see some action tomorrow with the release of Australian job data. On the technical side, Gold is continuing its pullback from 2062.92 and has dipped below the 2000 mark. Near-term outlook remains bullish as long as 1968.97 support level holds. break of 2022.38 minor resistance could indicate readiness a rally resumption, potentially testing record high of 2074.48. However, firm break below 1968.97 could signal that near-term bearish reversal is already underway. In Asia, at the time of writing, Nikkei is up 0.85%, back above 30k handle. Hong Kong HSI is down -0.55%. China Shanghai SSE is down -0.23%. Singapore Strait Times is down -0.83%. Japan 10-year JGB yield is down -0.0231 at 0.373. Overnight, DOW dropped -1.01%. S&P 500 dropped -0.64%. NASDAQ dropped -0.18%. 10-year yield rose 0.041 to 3.549. |
