 After initial jitters, Dollar rose broadly overnight as Fed Chair Jerome Powell indicated the possibility of higher terminal rate in the current tightening cycle. US stocks ended notably lower and risk-off sentiment carried on in Asian session. Yen is also rising on risk aversion. Nevertheless, markets are taking a breather for now, with focus firstly turned to BoE rate decision today. Besides, ISM services in US session, as well as non-farm payroll employment data tomorrow has the potential to trigger more volatility. Technically, the breaks of 0.9847 minor support in EUR/USD, 0.6355 minor support in AUD/USD, and 1.0030 minor resistance in USD/CHF suggest Dollar buying in coming back. Gold, too, might be heading back to 1614.60 low as recovery faltered at 1674.72, and even a break there, if Dollar builds up more upside momentum. In Asia, at the time of writing, Hong Kong HSI is down -2.70%. Chin Shanghai SSE is down -0.10%. Singapore Strait Times is down -1.24%. Japan is on holiday. Overnight, DOW dropped -1.55%. S&P 500 dropped -2.50%. NASDAQ dropped -3.36%. 10-year yield rose 0.007 to 4.059, after dipping to 3.976. |
