Yen and Swiss Franc are trading stronger together with Dollar today, as stock markets are pulling back slightly. On the other hand, New Zealand Dollar is leading other commodity currencies lower. US President-elect Joe Biden's new spending package was generally ignored by investors. Instead, worse than expected US data is weighing sentiments down slightly. For the week, Sterling remains the strongest, followed by Yen. Kiwi is the worst so far, followed by Euro. Technically, a focus for today and next week would be the strength of Yen's rebound. EUR/JPY's break of 126.03 support is a sign of underlying Yen strength. Break of 140.31 resistance in GBP/JPY would indicate rejection by 142.71 resistance and bring deeper fall. Break of 74.03 resistance turned support would also confirm short term topping at 75.56, on bearish divergence condition in 4 hour MACD. That should start a deeper correction through 72.71 support next. In Europe, currently, FTSE is down -0.84%. DAX is down -0.95%. CAC is down -1.07%. Germany 10-year yield is up 0.008 at -0.538. Earlier in Asia, Nikkei dropped -0.62%. Hong Kong HSI rose 0.27%. China Shanghai SSE rose 0.01%. Singapore Strait Times rose 0.16%. Japan 10-year JGB yield rose 0.0031 to 0.036. |
