 Market sentiment is stable today, with European index trading mildly higher while US futures point to a rebound. But overall direction remains rather unclear. Sterling is currently the stronger one, with additional help from buying against other European majors. Kiwi is also firmer, awaiting tomorrow's RBNZ rate hike, followed by Dollar. On the other hand, Swiss Franc, Yen and Euro are the softer ones. Aussie is mixed after an uneventful RBA decision earlier in the day. Technically, we'll keep an eye on Sterling again. In particular, EUR/GBP is heading closer to 0.8499 near term support. Firm break there will indicate completion of rebound from 0.8448 and bring retest of this low. Such development would also reaffirm medium term bearishness after prior rejection by 0.8668 resistance. GBP/JPY is also heading towards 152.54 resistance. Firm break there will suggest completion of correction from 156.05, after multiple test on 149.03 key support. Stronger rise would be seen back towards 156.05 high next. In Europe, at the time of writing, FTSE is up 0.58%. DAX is up 0.37%. CAC is up 0.79%. Germany 10-year yield is up 0.0039 at -0.209. Earlier in Asia, Nikkei dropped -2.19%. Hong Kong HSI rose 0.28%. Singapore Strait Times dropped -0.70%. Japan 10-year JGB rose 0.0058 to 0.057. China was on holiday. |
