Sterling jumps broadly today after much stronger than expected consumer inflation data, that raises the chance that BoE will "have to act" on interest rates soon. On the other hand, Canadian Dollar shrugs off strong, but inline with expectation CPI. Dollar is still among the strongest for the week, but it's apparently taking a breather for now. On the other hand, Euro is the worst performing, on expectation that ECB will lag behind other central banks in stimulus removal. Technically, we'd continue to focus on EUR/USD's reaction to 1.1289 long term fibonacci support. Sustained trading below this level will carry larger bearish implication and would bring even deeper down trend to 1.0635 (2020 low). Nevertheless, rebound from current level, followed by break of 1.1384 minor resistance, will indicate that selling pressure has eased, at least temporarily. And EUR/USD would then start to build a bottom. In Europe, at the time of writing, FTSE is down -0.42%. DAX is up 0.11%. CAC is up 0.06%. Germany 10-year yield is up 0.0036 at -0.237. Earlier in Asia, Nikkei dropped -0.40%. Hong Kong HSI dropped -0.25%. China Shanghai SSE rose 0.44%. Singapore Strait Times dropped -0.19%. Japan 10-year JGB yield dropped -0.0012 to 0.074. |
