The forex markets are a bit mixed today while trading is subdued. New Zealand Dollar stays as the strongest on RBNZ rate hike expectations. Swiss Franc and Euro are following, primarily thanks to recovery against Sterling. Yen is currently the weakest one for the day, followed by the Pound and then Canadian. But the weekly picture is unchanged, with Sterling and Dollar as strongest, Euro and Aussie as weakest. Technically, while Euro recovers against Yen, Sterling, Aussie and Canadian, it's not totally out of the woods against Dollar and Swiss Franc. We'd firstly watch 1.1262 temporary low in EUR/USD and 1.0505 key support in EUR/CHF. Firm break there could indicate resumption of broad based selloff in Euro. On the other hand, break of 1.1384 minor resistance in EUR/USD and 1.0596 minor resistance in EUR/CHF would argue that Euro has found a bottom already, at least for the near term. More short covering would likely follow. In Europe, at the time of writing, FTSE is down -0.23%. DAX is down -0.07%. CAC is up 0.10%. Germany 10-year yield is down -0.0216 at -0.265. Earlier in Asia, Nikkei dropped -0.30%. Hong Kong HSI dropped -1.29%. China Shanghai SSE dropped -0.47%. Singapore Strait Times rose 0.13%. Japan 10-year JGB yield rose 0.0092 to 0.084. |
