 The financial markets are sending mixed messages today, with risk sentiment seemingly improving as European indexes and US futures trade higher. US and German 10-year yields are also recovering. However, the currency markets paint a different picture, with Swiss Franc leading as the best performer, followed by Canadian Dollar and Sterling. In contrast, Yen is the worst, trailed by New Zealand and US Dollars. Euro is mixed, disregarding the improved German business climate. Trading could stay subdued due to an empty US economic calendar. From a technical perspective, Gold's performance may hint at the direction of risk sentiment. Today's decline suggests another rejection by 2000 handle. For now, further gains are anticipated as long as 1934.07 support level holds, potentially pushing through 2009.59 to resume the larger uptrend. However, decisive break below 1934.07 would indicate a deeper pullback is underway, possibly coinciding with a further recovery in risk markets. In Europe, at the time of writing, FTSE is up 1.05%. DAX is up 1.35%. CAC is up 1.14%. Germany 10-year yield is up 0.124 at 2.253. Earlier in Asia, Nikkei rose 0.33%. Hong Kong HSI dropped -1.75%. China Shanghai SSE dropped -0.44%. Singapore Strait Times rose 0.82%. Japan 10-year JGB yield rose 0.0189 to 0.295. |
