 Market reactions to the ongoing banking crisis reveal a shift away from Swiss Franc, traditionally considered a safe-haven currency, as Credit Suisse shares lose over two-thirds of their value following the acquisition announcement by UBS. The broader markets in Europe are, however, relatively steady. Euro and Sterling are experiencing notable increases today, with the Yen emerging even stronger. Dollar faces pressure in general but fares slightly better than commodity currencies. Today's market response suggests that the banking crisis is far from over, and further volatility is expected in the days ahead. Technically, 1.0759 resistance in EUR/USD is quickly within radar with today's rise. Firm break there will indicate completion of whole corrective fall from 1.1032, and bring stronger rally back to retest this high. At the same time, GBP/USD is already taking the lead by breaking through last week's high and it's on track to retest 1.2445/6 resistance zone. In Europe, at the time of writing, FTSE is up 0.37%. DAX is up 0.50%. CAC is up 0.76%. Germany 10-year yield is down -0.011 at 2.099. Earlier in Asia, Nikkei dropped -1.42%. Hong Kong HSI dropped -2.65%. China Shanghai SSE dropped -0.48%. Singapore Strait Times dropped -1.37%. Japan 10-year JGB yield fell -0.0262 to 0.247. |
