Japanese Yen registered notable slump today, recording a new low for the year against Dollar, a move driven largely by ascending benchmark yields in the US and European markets. Meanwhile, sentiment in risk markets appears to be on the upswing, partly propelled by encouraging economic data emerging from China, fostering an environment where commodity currencies are experiencing a lift, with Australian Dollar taking the forefront. Euro, on the other hand, managed to slow its descent, buoyed by remarks from ECB officials who sought to downplay the prospects of rate cuts in the coming year. The comments stimulated a recovery in Euro, particularly against Sterling and Swiss franc. While Dollar is making efforts to strengthen up, traders remain cautious, seemingly unwilling to stake large bets ahead of Fed's rate decisions slated for next week. Technically, EUR/CHF recovered well ahead of 0.9513 low, and the developments argues that post-ECB selling might have past its climax. Nevertheless, outlook will stay bearish as long as 0.9600 resistance holds. Break of 0.9513 is in favor sooner or later to resume larger decline from 1.0095. In Europe, at the time of writing, FTSE is up 0.68%. DAX is up 0.91%. CAC is up 1.43%. Germany 10-year yield is up 0.0649 at 2.661. Earlier in Asia, Nikkei rose 1.10%. Hong Kong HSI rose 0.75%. China Shanghai SSE dropped -0.28%. Singapore Strait Times rose 0.96%. Japan 10-year JGB yield rose 0.0013 to 0.710. |
