Euro weakens notably today as recovery momentum diminished quickly. Dollar is not gaining much, though, as commodity currencies trade broadly higher with new wave of buying. Australian Dollar is once again leading others. Canadian Dollar shrugs off weaker than expected inflation reading, and await BoC rate decision and the next move in oil price. In other markets, Gold has a wild ride today but stays in range established range after all. WTI crude oil looks ready to resume recent up trend. Technically, EUR/GBP's break of 0.8861 support is a sign of underlying weakness in Euro. Eyes will be on 0.5591 support in EUR/AUD and 1.5313 support in EUR/CAD. Decisive break of these level will bring down trend resumption, and solidify Euro's selloff. If that happens, attention could also be on how AUD/CAD would break out from recent range of 0.9772/9898, to gauge the relative strength. In Europe, currently, FTSE is up 0.01%. DAX is up 0.73%. CAC is up 0.38%. Germany 10-year yield is flat at -0.524. Earlier in Asia, Nikkei dropped -0.38%. Hong Kong HSI rose 1.08%. China Shanghai SSE rose 0.47%. Singapore Strait Times rose 0.10%. 10-year JGB yield dropped -0.0068 to 0.040. |
