 Sterling's rally picks up some strong momentum in pre-holiday trading. Meanwhile, overall steady to risk-on sentiment is also lifting Aussie and other commodity currencies. On the other hand, Euro is under tremendous pressure, thanks to selloff against the Pound. Dollar, Yen and Swiss Franc are also soft, with the greenback shrugging off strong PCE inflation data. Technically, the rallies in both GBP/USD and GBP/JPY carry some significance. Firstly, GBP/USD's break of 1.3373 suggests that 1.3164 medium term fibonacci support was well defended. Similarly, GBP/JPY's break of 152.60 also argues that it has already defended 148.93 structural support and 55 week EMA. Both pairs could be setting up the stage for near term bullish trend reversal. But of course, we'll need to see if momentum could sustain after holidays. In Europe, at the time of writing, FTSE is up 0.19%. DAX is up 0.62%. CAC is up 0.40%. Germany 10-year yield is up 0.0218 at -0.270. Earlier in Asia, Nikkei rose 0.83%. Hong Kong HSI rose 0.40%. China Shanghai SSE rose 0.57%. Singapore Strait Times rose 0.30%. Japan 10-year JGB yield rose 0.0033 to 0.067. |
