Overall sentiment appears to be positive in very quiet trading today. Major European indexes are trading higher while US and Germany benchmark yields are recovering mildly. Aussie is leading commodity currencies higher, as well as Sterling. Yen is currently the weaker one, followed by Swiss Franc and Dollar. Euro is mixed despite poor Germany business climate data. Technically, GBP/USD's break of 1.2055 minor resistance suggests that 1.1759 is already a short term bottom. Rebound from there should extend to have a take on 55 day EMA (now at 1.2258). Attention will now be firstly on 0.8456 minor support in EUR/GBP and 165.13 minor resistance in GBP/JPY. Break of these levels will indicate underlying strength in the Pound. Secondly, 1.0277 minor resistance in EUR/USD, 0.6976 temporary top in AUD/USD,. and 1.2821 temporary low in USD/CAD will be monitored. Break will indicate deeper near term selloff in Dollar. But of course, both scenarios could happen at the same time. In Europe, at the time of writing, FTSE is up 0.24%. DAX is up 0.41%. CAC is up 0.56%. Germany 10-year yield is up 0.0498 at 1.076. Earlier in Asia, Nikkei dropped -0.77%. Hong Kong HSI dropped -0.22%. China Shanghai SSE dropped -0.60%. Japan 10-year JGB yield dropped -0.0077 to 0.206. | 