Risk off sentiment appears to be intensifying today. Selloff in particularly serious in German DAX, while FTSE and CAC are also down. US futures are also pointing to a lower open while 10-year yield is pressing 3% handle. In the currency markets, Euro and Sterling are main losers for the day so far, but Yen is also weak. Dollar is clearly strong against most, with the exception of Aussie and Kiwi, which are showing some resilience. Technically, EUR/CHF is taking the lead in downside breakout, resuming down trend through 0.9602. Attention will be on when EUR/USD's reaction below parity. As EUR/USD breaks through 0.9951 low, the selloff could spill over to other pairs, and push EUR/AUD through 1.4318 low, and EUR/CAD through 1.2970. Let's see. In Europe, at the time of writing, FTSE is down -0.46%. DAX is down -2.14%. CAC is down -1.62%. Germany 10-year yield is up 0.054 at 1.285. Earlier in Asia, Nikkei dropped -0.47%. Hong Kong HSI dropped -0.59%. China Shanghai SSE rose 0.61%. Singapore Strait Times rose 0.49%. Japan 10-year JGB yield rose 0.0302 to 0.231. |
