Dollar firms up mildly in early US session as headline CPI was back at multi-decade high, which core CPI remains stubbornly strong. The gain in the greenback is so far limited. Overall markets continue to trade in consolidative mode, with mild weakness seen in commodity currencies while Swiss Franc and Euro are rebounding. Next focus is FOMC minutes, but they are unlikely to unveil anything spectacular, other than that Fed is ready to start tapering by the end of the year. Technically, as Dollar is trying to recover, we'll look at 1.3542 minor support in GBP/USD and 0.7287 minor support in AUD/USD. Break of these level could be a sign that Dollar buying is back. If that happens, we'd also have to seen if EUR/USD would reaccelerate down, while USD/JPY reaccelerates up, to confirm. In Europe, at the time of writing, FTSE is down -0.03%. DAX is up 0.56%. CAC is up 0.28%. Germany 10-year yield is down -0.032 at -0.114. Earlier in Asia, Nikkei dropped -0.32%. China Shanghai SSE rose 0.42%. Singapore Strait Times rose 1.43%. Japan 10-year JGB yield dropped -0.0060 to 0.090. |
