Dollar tumbles broadly today as markets are staying in risk-on mode. Additional selling pressure is seen on the greenback after shocking poor ADP job data. On the other hand, Euro is lifted by another record reading in consumer inflation data. Sterling is following Euro as markets await tomorrow's BoE rate hike. Aussie is slowing down a bit, but maintains most of this week's gains. Technically, the case for near term bearish reversal in Dollar is building up with some levels taken out, including 1.1299 minor resistance in EUR/USD, 1.3523 minor resistance in GBP/USD and 114.46 minor support in USD/JPY. Focus is now on the next levels, including 1.1482 resistance in EUR/USD, 1.3748 resistance in GBP/USD, 0.7313 resistance in AUD/USD, 0.9090 support in USD/CHF and 113.46 support in USD/JPY. Break of these levels will suggest that Dollar has already started the bearish reversal. In Europe, at the time of writing, FTSE is up 0.79%. DAX is up 0.39%. CAC is up 0.67%. Germany 10-year yield is up 0.0074 at 0.044. Earlier in Asia, Nikkei rose 1.68%. Japan 10-year JGB yield dropped -0.0038 to 0.179. Hong Kong, China and Shanghai were on holiday. |
