 Risk sentiment improved slightly earlier in Asian session on rumors that China is going to exit its zero-Covid policy earlier. Yet the announcement of the National Health Commission on speeding up vaccination for the elderly was a big let-down. After all, Dollar, and Swiss Franc are on the softer side today so far, with Euro. New Zealand, Australian and Canadian Dollar are on the firmer side. Sterling and Yen are mixed. Focuses will partly stay on unrest in China, and partly back on economic data and comments from central bankers. Technically, EUR/USD's rally overnight was cut short, reflecting much indecisiveness in the markets. There could be some more volatility ahead in the week with Eurozone inflation and US employment data featured. But after all, near term outlook will stay mildly bullish as long as 1.0222 support holds and rise from 0.9534 should resume sooner or later. However, break of 1.0222 will complete a double top pattern (based on current structure 1.0481 and 1.0496), and indicate near term bearish reversal. In Asia, Nikkei dropped -0.48%. Hong Kong HSI is up 3.79%. China Shanghai SSE is up 2.31%. Singapore Strait Times is up 1.00%. Japan 10-year JGB yield is down -0.001 at 0.257. Overnight, DOW dropped -1.45%. S&P 500 dropped -1.54%. NASDAQ dropped -1.58%. 10-year yield rose 0.012 to 3.703. |
