Selloff in stock markets resume today, after Moderna Chief Executive Stéphane Bancel foresaw "material drop" in effectiveness of current vaccines on Omicron. Benchmark treasury yields also tumble sharply on safe haven flows. In the currency markets, Canadian Dollar lead commodity currencies lower, as oil price tumble. Dollar is dragged down by steep falling in treasury yield. At the same time, Yen, Swiss Franc and Euro are the strongest. Technically, EUR/USD is finally making some concrete progress, pressing 1.1373 minor resistance. Firm break there will confirm short term bottoming at 1.1185 and bring stronger rise back to 55 day EMA (now at 1.1518). At the same time, USD/JPY is also pressing 112.71 structural support. Sustained break there will bring larger scale correction. In Europe, at the time of writing, FTSE is down -0.85%. DAX is down -1.07%. CAC is down -1.03%. Germany 10-year yield is down -0.039 at -0.355. Earlier in Asian, Nikkei dropped -1.63%. Hong Kong HSI dropped -1.58%. China Shanghai SSE rose 0.03%. Singapore Strait Times dropped -2.54%. Japan 10-yaer JGB yield dropped -0.0157 to 0.059. |
