While US stocks staged a strong rebound overnight, the moves didn't follow through in mixed Asia. There is also little reaction in the currency markets. Yen and Dollar remain the strongest ones for the week, despite retreating mildly. New Zealand Dollar is the worst performer, followed by Aussie and then Sterling. Euro is not performing too badly, given some support in crosses. With a light economic calendar today, focuses will stay on developments in the risk markets, and then turn to ECB's new forward guidance tomorrow. Technically, we'd continue to pay attention to some Sterling pairs. As noted before, firm break of 0.8670 resistance in EUR/GBP could argues that whole rebound from 0.8470 is ready to resume through 0.8718 resistance. Sustained break of 149.03 support in GBP/JPY could open up the bearish case for deeper decline to 142.71 resistance turned support. GBP/USD could also test 1.3482 resistance turned support and firm break there would confirm correction to whole rise from 1.1409. In Asia, at the time of writing, Nikkei is up 0.44%. Hong Kong HSI is down -0.56%. China Shanghai SSE is up 0.65%. Singapore Strait Times is down -0.07%. Japan 10-year JGB yield is down -0.0037 at 0.011. Overnight, DOW rose 1.62%. S&P 500 rose 1.52%. NASDAQ rose 1.57%. 10-year rose 0.028 to 1.209. |
