Stocks markets are turning back into risk off mode with US futures pointing to sharply lower open. Yen managed to reverse earlier losses and trading generally higher. Canadian Dollar is also firm as supported by extended rally in oil prices. Dollar is following with some lift by rising treasury yields. On the other hand, Sterling is currently the weakest one, weighed down further by selloff against other Europeans. But Aussie and Kiwi are not to far away. Technically, we'll pay attention to WTI crude oil today as it's now pressing 85.92 high. We're not expecting a decisive break there. Rejection by this resistance, followed by break of 81.60 support, should trigger near term reversal back towards 73.66 resistance turned support. In this case, we could seen Canadian Dollar reverses too with USD/CAD breaking through 1.2619 resistance. However, strong break of 85.92 will give the Loonie another boost, probably pushing EUR/CAD through 1.4162 low. In Europe, at the time of writing, FTSE is up 0.50%. DAX is up 0.86%. CAC is up -0.77%. Germany 10-year yield is flat at -0.023. Earlier in Asia, Nikkei dropped -0.27%. Hong Kong HSI dropped -0.43%. China Shanghai SSE rose 0.80%. Singapore Strait Times dropped -0.24%. Japan 10-year JGB yield rose 0.0056 to 0.152. |
