Yen jumps broadly in Asian session today as Hong Kong stocks are accelerating its free fall. Dollar is following as the second strongest for now, and then Swiss Franc. Commodity currencies are naturally the weakest, as led by Australian Dollar, but Sterling is not too far away. Four central banks will meet this week. In particular, traders could be turning more cautious towards FOMC policy decision and economic projections. While an announcement of tapering is very unlikely, there is scope of some hawkish surprises. Technically, Sterling appears to be underperforming Euro today, but that's mainly because Euro was the worse one last week. A development is note is whether the tide between Sterling and Euro is turning as risk sentiment turns sour. For now, deeper fall is in favor in EUR/GBP as long as 0.8561 minor resistance holds. But break of this resistance will bring stronger rise to 0.8612, and possibly resume the rebound from 0.8448 low. In Asia, Japan and China are on holiday. Hong Kong HSI is down -4.13%. Singapore Strait Times is down -0.33%. |
