The currency markets continue to be relatively steady today, as traders are holding their bets ahead of Fed's expected 75bps rate hike. Euro is recovering slightly but remains the worst performer for the week, followed by Yen. On the other hand, Canadian Dollar is leading Australian and Sterling higher. Dollar is mixed for now. The interplay between US stocks, benchmark yields, and Dollar will be the major focus for the retest of the session. Technically, some attention will also be on Gold's reaction to Fed hike. Recovery from 1680.83 is so far disappoinintg. But another rally is still envisaged. Firm break of 1745.21 minor resitasnce swhould confirm short term bottoming at 1680.83, on bullish convergence condition in 4 hour MACD. That would also be the first signal of near term bullish reversal , and turn focus to channel resitsance at around 1780. In Europe, at the time of writing, FTSE is up 0.69%. DAX is up 0.64%. CAC is up 0.58%. Germany 10-year yield is up 0.014 at 0.942, staying below 1%. Earlier in Asia, Nikkei rose 0.22%. Hong Kong HSI dropped -1.13%. China Shanghai SSE dropped -0.05%. Singapore Strait Times rose 0.41%. Japan 10-year JGB yield dropped -0.0142 to 0.195, back below 0.2%. |
