Euro's broad based decline continues today, dragging down the Swiss Franc, and to a lesser extent Sterling too. Italy bench yield jumps sharply on increasing risk of fresh elections in the summer. On the other hand, commodity currencies continue to be strong, as supported by overall solid risk sentiments. Global equities are clearly just taking a breather this week, in consolidations. Dollar and Yen are mixed for now, with the greenback holding a slight upper hand. Technically, EUR/USD's break of 1.2131 suggests that correction from 1.2348 has resumed. While deeper pull back could be seen, we're looking at strong support from 1.2058 to contain downside. But we'll see. USD/CHF is also back pressing 0.8918 resistance. Decisive break there should bring even stronger rebound back to 0.8998 support turned resistance. A focus today would be on whether the decline in Euro could help push Gold through 1817.05 temporary low, which is turn helps Dollar rebound elsewhere. In Europe, currently, FTSE is up 0.44%. DAX is up 0.19%. CAC is up 0.11%. German 10-year yield is down -0.0323 at -0.550. Italy 10-year yield is up 0.072 at 0.663. Earlier in Asia, Nikkei rose 0.85%. Hong Kong HSI rose 0.93%. China Shanghai SSE dropped -0.91%. Singapore Strait Times rose 0.76%. Japan 10-year JGB yield rose 0.0017 to 0.033. |
