Sterling tumbles broadly today on increasing talks of energy shortages due to a post-Brexit shortage of truck drivers, as well as a halt to license testing during pandemic lockdowns. Mild risk aversion, which start in European markets, is also weighing down some commodity currencies. Nevertheless, there is little lift to Yen overall, which stays weak against most. Surge US treasury yields is boosting Dollar while German yield is also supporting Euro. Technically, GBP/USD's break of 1.3570 support indicates resumption of fall from 1.4248 to 1.3482 key structural support. Break will confirm that it's in a medium term correction that should at least target 1.3163 fibonacci level. At this same time, 111.65/71 resistance zone in USD/JPY is now an immediate focus. Sustained break there will be a signal of long term bullish reversal. In Europe, at the time of writing, FTSE is down -0.12%. DAX is down -1.32%. CAC is down -1.63%. Germany 10-year yield is up 0.0032 at -0.187, back above -0.2 handle. Earlier in Asia, Nikkei dropped -0.19%. Hong Kong HSI rose 1.20%. China Shanghai SSE rose 0.54%. Singapore Strait Times dropped -0.73%. Japan 10-JGB yield rose 0.0187 to 0.075. |
