 While US stocks hit another record high overnight, the path reversed with the three major indexes closing lower, with particular heavy selling in NASDAQ. Bearish sentiment continues in Asia session today, with Nikkei and Hong Kong HSI in deep red. Reactions in currency markets are mild, however, with commodity currencies just in shallow retreat. Yen is also not gaining much from risk aversion. Almost all major pairs and crosses are trading inside yesterday's range so far. Technically, Sterling will remain a focus for today. EUR/GBP's breach of 0.8587 support suggests that deeper fall is under way to retest 0.8470 low. GBP/USD is also on track to retest 1.4240 high and break will resume larger up trend. We'd pay special attention to GBP/CHF, which is pressing 1.2733 resistance now. Sustained break there will indication completion of the correction from 1.3070. Stronger rally would then be seen back to retest this high. Such development could spillover to more strength in the Pound elsewhere. In Asia, at the time of writing, Nikkei is down -2.94%. Hong Kong HSI is down -2.15%. China Shanghai SSE is down -0.27%. Singapore Strait Times is down -0.71%. Japan 10-year JGB yield is down -0.0049 at 0.080. Overnight, DOW dropped -0.10%. S&P 500 dropped -1.04%. NASDAQ dropped -2.55%. 10-year yield rose 0.025 to 1.602. | 
