The main focus remains on Yen's selloff today, on the back of widening yield spread between Japan JGB and other major benchmark treasuries. Meanwhile, Euro appears to be strengthening in general too. Traders are probably buying up the Euro in anticipation on a hawkish ECB policy decision and press conference tomorrow. The central should without a doubt announce the end of asset purchases after June. The question is whether President Christine Lagarde would hint on a larger rate hike in July, or a conservative one. Technically, however, Euro still has a lot to proof as it's range bound against most except Yen and Swiss Franc. Levels to watch include 1.0788 minor resistance in EUR/USD, 0.8617 resistance in EUR/GBP, 1.4965 minor resistance in EUR/AUD, and 1.3538 minor resistance in EUR/CAD. Break of these levels is needed to confirm underlying momentum in Euro. In Europe, at the time of writing, FTSE is down-0.60%. DAX is down -0.73%. CAC is down -1.00%. Germany 10-year yield is up 0.061 at 1.357. Earlier in Asia, Nikkei rose 1.04%. Hong Kong HSI rose 2.24%. Chinas Shanghai SSE rose 0.68%. Singapore Strait Times dropped -0.18%. Japan 10-year JGB yield dropped -0.0019 to 0.248. |
