 Dollar dives sharply in early US session after lower than expected CPI readings. CPI might have really started to turn around, and that would support Fed to start slowing the pace of tightening. For now, Sterling, Aussie and Yen are the strongest ones while Swiss Franc and Euro are lagging behind. But it will take some more time to find out whole's the biggest beneficiary of the Dollar selloff. Technically, USD/JPY will be the most interesting one to watch as it's now pressing 38.2% retracement of 130.38 to 151.93 at 143.69. Sustained break there will argue that fall from 151.93 is not just correcting the rise from 130.38, but also a larger up trend. If that's true, there is prospect of deeper decline, as a medium term correction, back to 130.38/139.37 support zone. In Europe, at the time of writing, FTSE is up 1.15%. DAX is up 2.33%. CAC is up 1.16%. Germany 10-year yield is down -0.167 at 2.004. Earlier in Asia, Nikkei dropped -0.98%. Hong Kong HSI dropped -1.70%. China Shanghai SSE dropped -0.39%. Singapore Strait Times rose 0.24%. Japan 10-year JGB yield is down -0.0128 at 0.246. |
