 European majors, including the Swiss Franc, are under much selling pressure currently. EUR/USD dived through parity, and hit a new low. The development came on worries that Russia will further weaponize its natural gas supplies to Europe, adding further weight to the already troubled economy. Dollar is strong as supported by rising treasury yield, with 10-year yield back above 3% handle. But Aussie and Kiwi are so far also resilient. Yen is mixed with counter forces of risk-aversion and rising yields. Technically, a focus for the week is US 10-year yield's reaction to 3.101 resistance, as reaction to Jackson Hole symposium too. Firm break there could prompt some upside acceleration towards 3.483 high before the end of the quarter. Such development, if happens, could also come with deeper selloff in stocks, and give support to the greenback. Anyway, a roller coaster is probably awaiting in September. In Asia, at the time of writing, Nikkei is down -1.16%. Hong Kong HSI is down -0.49%. China Shanghai SSE is up 0.18%. Singapore Strait Times is down -0.61%. 10-year yield is down -0.0089 at 0.222. Overnight, DOW dropped -1.91%. S&P 500 dropped -2.14%. NASDAQ dropped -2.55%. 10-year yield rose 0.048 to 3.037. |
