The financial markets are steadily optimistic so far this week and that can be reflected in the rebound in German bund yield and US 10 year yield. Yen is trading broadly lower today, followed by the Swiss Franc. Australian, New Zealand and US Dollar are trading mildly higher. Eyes are on the summit between North Korea Leader Kim Jong-un and US President Donald Trump in Singapore in Asian session. The outcomes are positive so far as Kim said it's a "good prelude for peace". One notable development in the currency markets is the break of 110.26 minor resistance in USD/JPY. It suggests resumption of recent rebound from 108.10 and further rise would be seen to 110.39 next. For now, USD/CHF is holding below 0.9911 minor resistance. EUR/USD is above 1.1713 minor support. There is no indication of completion of recent correction in Dollar yet. While FOMC economic projections to be released tomorrow is a key, markets will look into today's US CPI for guidance first. Sterling is relatively resilient so far despite yesterday's data miss in industrial and manufacturing production. GBP/USD is holding on to 1.3347 minor support. EUR/GBP is also held below 0.8844 resistance. But the Pound would be vulnerable to another round of selloff today. UK job and wage data are important facts for BoE to decide whether to hike in August or not. |