 Funds appear to be flowing out of Euro and Swiss Franc, in relatively quiet trading today. Some focuses are on the Euro-denominated bonds issued by Credit Suisse, which dropped to record lows. Investors are concerned about the Swiss bank's restructuring program, due to be announced later in the month. Euro and Franc are the worst performers, followed by Yen, while Dollar is mixed. Sterling is trying to rebound after UK Finance Minister Kwasi Kwarteng confirmed to abandons plan to scrap 45p top rate of income tax. But Aussie and Kiwi are stronger ahead of rate hikes by RBA (Tue) and RBNZ (Wed). Technically, EUR/GBP is breaking through 0.8720 resistance turned support to indicate near term bearish reversal. But the question is whether it's translated into more upside in GBP/USD, downside in EUR/USD, or both. For now, outlook in EUR/USD isn't bullish as long as 0.9863 support turned resistance holds. Break of 0.9634 minor support will bring retest of 0.9534 low. In Europe, at the time of writing, FTSE is down -0.34%. DAX is down -0.07%. CAC is down -0.27%. Germany 10-year yield is down -0.134 at 1.977. Earlier in Asia, Nikkei rose 1.07%. Hong Kong HSI dropped -0.83%. China was on holiday. Singapore Strait Times dropped -0.74%. Japan 10-year JGB yield dropped -0.0079 to 0.244. |
