 The Asian markets are generally quiet today, with the expectation in China. The Shanghai SSE reversed earlier losses and surged before the break, with talks of buying by the "national team". But Yuan's decline continued and hit another record low. In the forex markets, most major pairs and crosses are bounded inside yesterday's range. Today's economic calendar is relatively light, but German Ifo business climate and US consumer confidence could trigger some volatility. Nevertheless, traders might wait for rate decisions of BoC and ECB later in the week before making a committed move. Technically, EUR/CHF is attempting to build up momentum to resume the rally from 0.9407. Sustained trading above 61.8% projection of 0.9407 to 0.9798 from 0.9641 at 0.9883 will solidify the case of medium term bottoming and target 100% projection at 1.0032. The interest there is whether EUR/CHF's rise, if happens, would result in EUR/USD breaking through 0.9998, or USD/CHF breaking through 1.0146, or both. In Asia, at the time of writing, Nikkei is up 1.23%. Hong Kong HSI is up 0.87%. China Shanghai SSE is up 0.74%. Singapore Strait Times is up 0.61%. Japan 10-year JGB yield is up 0.0002 at 0.257. Overnight, DOW rose 1.34%. S&P 500 rose 1.19%. NASDAQ rose 0.86%. 10-year yield rose 0.021 to 4.234. |
