Dollar's selloff finally took off overnight as US stocks were boosted further to new record highs on reflation trade and vaccine optimism. Selling is really broad based this time, as the greenback tumbled even against Yen and Swiss Franc. For now, New Zealand and Australian Dollars are the strongest ones but Canadian Dollar is lagging behind despite strong oil prices. With a light economic calendar this week, more downside in Dollar is in favor for the near term. Technically, GBP/USD's break of 1.3758 resistance confirms up trend resumption. EUR/USD also broke 1.2052 support turned resistance to indicate completion of of correction from 1.2348. Further rise would be seen back to 1.2188 resistance to solidify near term bullishness. Focuses now would be on 0.8925 resistance turned support in USD/CHF and 104.39 in support in USD/JPY. It's unsure if two levels would be broken. But firm break there would be a real bearish signal for Dollar. In Asia, currently, Nikkei is up 0.18%. Hong Kong HSI is up 0.39%. China Shanghai SSE is up 1.22%. Singapore Strait Times is up 0.17%. Japan 10-year JGB yield is down -0.0026 at 0.067. Overnight, DOW rose 0.76%. S&P 500 rose 0.74%. NASDAQ rose 0.95%. All were record highs. 10-year yield dropped -0.010 to 1.160. |