 Canadian Dollar leads commodity currencies higher in Asian session, with help from extended rally in oil price. Overall sentiment is mixed though and Yen is trying to pare back some of last week's losses. Some weakness in seen in both European majors and Dollar but movements in respective pairs are limited. Euro is also stuck in range, mixed, shrugging off the results of elections in Germany. Technically, the developments in both stocks and treasury yields would be watched initially this week. Firstly, a question is whether the late strong rebound in US stocks could extend and even resume larger record runs. Secondly, US 10-year yield might be able to stay firm above 1.4 handle, which in turn set the stage for that 1.765 high later in the year. Accompanying that, we'll keep an eye on whether USD/JPY could break through 110.79 resistance decisively, which would pave the way for a retest on 111.65 high. In Asia, at the time of writing, Nikkei is down -0.02%. Hong Kong HSI is up 0.28%. China Shanghai SSE is down -1.30%. Singapore Strait Times is up 1.14%. 10-year JGB yield is up 0.0013 at 0.056. |
