The market opened the month with mildly positive sentiment, with major Asian indexes trading higher. But there is little reaction in the currency markets. Commodity currencies are generally soft for now, with slight losses in particular in Kiwi and Loonie. On the other hand, Dollar, Yen and Euro are trading mildly higher. Overall, however, there are no big moves yet as traders are awaiting a very busy week ahead, with two central bank meetings, and lots of heavy weight data releases. Technically, one key question is that whether Dollar would solidify last week's decline into general near term bearish reversal. In particular, EUR/USD needs to break through 1.1907 temporary top to resume the rebound from 1.1751 low first. Then, follow through buying is needed to push the pair through 1.2 handle decisively. We'll if that would happen. In Asia, at the time of writing, Nikkei is up 1.68%. Hong Kong HSI is up 1.26%. China Shanghai SSE is up 1.50%. Singapore Strait Times is down -0.27%. Japan 10-year JGB yield is up 0.0008 at 0.021. |
