 At this point so far, Euro is the strongest one for the week, while Swiss Franc is the weakest, thanks to the upside breakout and rally yesterday. Dollar is more on the soft side too but there is still no clear follow through selling after the decline on Monday. Apparently, traders are still holding their bets, and await today's US consumer inflation data. Clear deceleration in both headline and core CPI is expected, which should give a nod to a smaller 25bps hike by Fed in February. Technically, following up on GBP/CHF, after yesterday's rise, corrective pattern from 1.1574 should have completed with three waves to 1.1094. Further rally is now expected as long as 1.1180 support holds. Retest of 1.1543/74 resistance zone should be seen next. With EUR/GBP struggling to break through 0.8876 resistance firmly, current moves in European majors are more about Swiss Franc's own weakness. In Asia, at the time of writing, Nikkei is up 0.05%. Hong Kong HSI is down -0.30%. China Shanghai SSE is down -0.16%. Singapore Strait Times is down -0.45%. Japan 10-year JGB yield is up 0.0039 at 0.510. Overnight, DOW rose 0.80%. S&P 500 rose 1.28%. NASDAQ rose 1.76%. 10-year yield dropped -0.067 to 3.554. |
