 The majority of Dollar bulls appear to be staying on the sideline today. Despite earlier rally attempt, the greenback starts to pare back some gains into US session. US futures are also trading flat in very tight range. Investors are holding their bet ahead of a wave of speeches of central bankers, and more importantly, US CPI data to be featured later in the week. Sterling is taking European majors higher after solid job data. Commodity currencies are digesting recent losses. Technically, both EUR/JPY and GBP/JPY are holding above minor support levels of 140.77, 159.41 respectively, despite this week's retreats. As long as these levels hold, further rise could be seen to retest recent highs at 145.62 and 169.10, before another fall. The interesting part is, if EUR/JPY and GBP/JPY do rebound, what would be the corresponding action in USD/JPY? A break through 145.89 high even with the risk of intervention by Japan? In Europe, at the time of writing, FTSE is down -0.44%. DAX is down -0.30%. CAC is down -0.01%. Germany 10-year yield is down -0.0164 at 2.330. Earlier in Asia, Nikkei dropped -2.64%. Hong Kong HSI dropped -2.23%. China Shanghai SSE rose 0.19%. Singapore Strait Times dropped -0.08%. Japan 10-year JGB yield rose 0.0014 to 0.255. |
