Global equities are under selling pressure today with another round of rise in treasury yields. In particular, Germany 10-year yield jumped above -0.1% handle and hit the highest level since mid-2019. The development came after stronger than expected inflation reading from UK, which was later followed by Canada CPI. New Zealand Dollar and Australian Dollar are the weakest ones for now, followed by Swiss Franc. Dollar and Euro and the strongest, followed by Canadian. Technically, on focus now is whether the selloff in equities would intensify and push commodity currencies lower. In particular, break of 0.7687 support in AUD/USD would indicate completion of rebound from 0.7530, and bring retest of this low. Similarly, break of 0.7133 support in NZD/USD will indicate completion of rebound form 0.6942 and bring retest of this support. The development could depend on FOMC minutes to be featured later in the session. In Europe, at the time of writing, FTSE is down -1.32%. DAX is down -1.76%. CAC is down -1.55%. Germany 10-year yield is up 0.005 at -0.096. Earlier in Asia, Nikkei dropped -1.28%. Hong Kong was on holiday. China Shanghai SSE dropped -0.51%. Singapore Strait Times dropped -1.22%. Japan 10-year JGB yield dropped -0.0046 to 0.076. |
