The forex markets are extending near term corrective moves today, with Yen turning slightly stronger, followed by Swiss Franc. Canadian Dollar and Sterling are the weaker ones, followed by Dollar. The Loonie will look into BoC policy decision for guidance. Meanwhile, broader markets will look at development in overall risk sentiments. European indexes are trading slightly lower but US futures point to high open. Technically, USD/CAD would be a focus in US session. While recovery from 1.2286 is extending, there is no change in the view that it's just a corrective recovery. As long as 1.2497 resistance holds, larger fall from 1.2947 should still resume, sooner or later, through 1.2286 to 161.8% projection of 1.2947 to 1.2492 from 1.2894 at 1.2158 next. However, break of 1.2497 wall bring even stronger rebound. We'll see which one it goes. In Europe, at the time of writing, FTSE is down -0.14%. DAX is down -0.35%. CAC is down -0.25%. Germany 10-year yield is down -0.0573 at -0.173. Earlier in Asia, Nikkei dropped -0.03%. Hong Kong HSI dropped -1.57%. China Shanghai SSE dropped -0.98%. Singapore Strait Times rose 0.42%. Japan 10-year JGB yield dropped -0.006 to 0.098. |
