 Sterling dives sharply after dovish BoE rate hike, which saw two doves dissented. Aussie and Kiwi are following as next weakest as risk-off sentiment persists. Dollar's post-FOMC rally is accelerating, partly supported by expectation of a higher terminal rate for Fed, and partly by risk aversion. Yen is following as next strongest, and then Canadian, while Euro and Swiss Franc are mixed. Technically, as Sterling's selloff picks up, focus will be on 0.8779 minor resistance in EUR/GBP, 164.95 minor support in GBP/JPY, and 1.1283 resistance turned support in GBP/CHF. Firm break of these levels will at least trigger squaring of position built up from the spike low during Liz Truss's era in September. In particular, for GBP/CHF, that would set up deeper decline to 1.0893 support. In Europe, at the time of writing, FTSE is down -0.72%. DAX is down -1.67%. CAC is down -1.27%. Germany 10-year yield is up 0.143 at 2.281. Earlier in Asia, Nikkei dropped -0.06%. Hong Kong HSI dropped -3.08%. China Shanghai SSE dropped -0.19%. Singapore Strait Times dropped -1.23%. Japan 10-year JGB yield is down -0.0052 to 0.247. |
