 The financial markets are rather quiet today. Commodity currencies are paring back some of last week's losses while Yen is retreating. But there is no change in the overall outlook, with the decline in Yen crosses more likely to continue than not. Trading could remain subdued first in European session with a light economic calendar. But comments from a number of Fed officials, including Chair Jerome Powell, Clarida, Bowman, Evans and BoE Governor Andrew Bailey could trigger some volatility. Technically, a major focus will be on whether EUR/USD would follow up with last week's downside breakout. For now, committed selling to push it through 1.1512 temporary low, and sustained trading below 1.1523 support, are needed to confirm resumption of the whole fall from 1.2348. At the same time, GBP/USD will need to break through 1.3410 support firmly to confirm resumption of the fall from 1.4248. In Asia, at the time of writing, Nikkei is down -0.33%. Hong Kong HSI is down -0.57%. China Shanghai SSE is up 0.10%. Singapore Strait Times is up 0.45%. Japan 10-year JGB yield is down -0.0006 at 0.063. |
