As European stocks turned south after initial trading, US futures also also dragged down. Overall market sentiments turned mixed after a bright start in Asia. Dollar is recovering mildly but commodity currencies remain the strongest one so far, as led by New Zealand Dollar. There is apparently some pressure on European majors after German Ifo business climate dropped to 6-month low. The current around of tough restrictions is generally expected to drag European economics to a double dip recession But of course, selloff in stocks and European majors is not deep for now. Vaccine roll-outs are the basis for optimism of a back-to-normal second half. Technically, most major pairs and crosses are bounded inside Friday's range, except a few Kiwi pairs. Recovers in EUR/USD, EUR/GBP and EUR/AUD are all losing momentum. We might see retest of 1.0252, 0.8828, and 1.5591 lows respectively, if selloff intensifies. In Europe, currently, FTSE is down -0.89%. DAX is down -1.22%. CAC is down -1.10%. German 10-year yield is down -0.028 at -0.538. Earlier in Asia, Nikkei rose 0.67%. Hong Kong HSI rose 2.41%. Singapore Strait Times rose 0.48%. Singapore Strait Times dropped -0.60%. Japan 10-year JGB yield dropped -0.0036 to 0.039. |
