Dollar is paring some gains today as markets digest near term moves. But the greenback remains the strongest for the week, as markets are adding bets to more aggressive rate hikes by Fed this week, and at next month's meeting. Yen is so far the next strongest, as supported by risk aversion. Aussie is so far the worst performing one, followed by Sterling and Kiwi. Euro and Swiss Franc are mixed. While the greenback should continue to be strong, the dynamics between other currencies would be depend on the outcome of other central bank meetings including BoE, SNB and BoJ. Technically, GBP/USD's break of 1.2154 support confirmed down trend resumption. But EUR/GBP is holding below 0.8617 resistance. So the Pound's weakness is not too overwhelming yet. On the other hand, EUR/USD is holding above 1.0348 support. USD/CHF is staying below 1.0063 resistance. Thus, Dollar's strength is also not too decisive yet. Let's see how things go. In Asia, Nikkei dropped -1.32%. Hong Kong HSI is down -0.23%. China Shanghai SSE is up 1.02%. Singapore Strait Times is down -0.83%. Japan 10-year JGB yield rose 0.0073 to 0.262. Overnight, DOW dropped -2.79%. S&P 500 dropped -3.88%. NASDAQ dropped -4.68%. 10-year yield rose 0.21 to 3.366, and broke through 2018 high at 3.248. |
