 Sterling surges broadly today, shrugging off PMI data which indicates extended weakness in the economy. It's even over-powering New Zealand Dollar, which was lifted by RBNZ's jumbo rate hike. On the other hand, selling is focusing on Dollar, Canadian and Australia, while Yen is also on the weak side. Euro is mixed, and it's clearly lagging behind both the Pound and Swiss Franc. Technically, GBP/CAD is extending the rise from 1.4069 low, and further rally is expected as long as 1.5811 resistance turned support holds. Next target is 61.8% projection of 1.4069 to 1.5811 from 1.5167 at 1.6244. Decisive break there could prompt upside acceleration to 100% projection at 1.6909, and solidify the momentum for a medium term up trend, rather than a corrective rebound. In Europe, at the time of writing, FTSE is up 0.06%. DAX is down -0.31%. CAC is down -0.12%. Germany 10-year yield is down -0.003 at 1.982. Earlier in Asia, Japan was on holiday, Hong Kong HSI rose 0.57%. China Shanghai SSE rose 0.26% Singapore Strait Times dropped -0.11%. |
