 While Dollar was sold off overnight, the decline was less severe than originally expected. Indeed, the greenback is currently just the second worst performer for the week, following Swiss Franc. The rally in commodity currencies was also less than convincing with Kiwi and Loonie as third and fourth weakest. Yen is currently the strongest, with help from narrowing yield gap. Euro, is next strongest while Sterling and Aussie are mixed. Technically, USD/JPY's break of 129.49 support indicates resumption of the decline from 151.39. Development in EUR/JPY and GBP/JPY also suggest that near term rebounds have completed, and retest of 137.37 and 155.33 could be seen next. Similarly, CAD/JPY could revisit 95.38 soon and AUD/JPY could follow and head back to 87.00. In Asia, at the time of writing, Nikkei is down -1.15%. Hong Kong HSI is flat. China Shanghai SSE is up 0.47%. Singapore Strait Times is up 0.27%. Japan 10-year JGB yield is up 0.008 at 0.513. Overnight, DOW rose 0.64%. S&P 500 rose 0.34%. NASDAQ rose 0.64%. 10-year yield dropped -0.105 to 3.449. |
