 Dollar is trading on the softer side again as focus turns to CPI report from the US today. While the markets are finally buying in that federal fund rates would peak above 5% level, there are already some bets on a higher terminal rate. Meanwhile, the bets on a rate cut this year is receding after Fed officials repeatedly rule that out. Eventually, the path would be heavily dependent on the inflation outlook. Elsewhere, Yen is recovering but remains the weakest one for the weak. Sterling is the strongest, followed by Aussie and then Swiss Franc. Euro is mixed for now. Technically, selloff in Gold and EUR/USD have slowed, as they are both trying to draw support from 55 day EMAs respectively. For Gold, strong rebound from current level, followed by break of 1890.10 resistance, will indicate that pull back from 1959.47 has completed. More importantly, in such case, even if the corrective pattern might extent, rise from 1614.60 should resume at a later stage. Such development would also affirm EUR/USD's bullishness for another rally through 1.1032. In Asia, Nikkei closed up 0.64%. Hong Kong HSI is down -0.17%. China Shanghai SSE is up 0.10%. Singapore Strait Times is down -0.25%. Japan 10-year JGB yield is up 0.0020 at 0.506. Overnight, DOW rose 1.11%. S&P 500 rose 1.14%. NASDAQ rose 1.48%. 10-year yield dropped -0.027 to 3.717. |
