 Dollar shrugs off worse than expected Q1 GDP data and recovers against European majors in early US session. But momentum is so far weak except versus Swiss Franc, which happens to be the worst performer for the day. Australian Dollar and other commodity currencies turned into consolidation, digesting this week's losses. Meanwhile, Euro and Sterling are losing much momentum for now, and turned mixed. Yen is also engaging in range trading, awaiting tomorrow's first BoJ announcement by new governor Kazuo Ueda. Technically, EUR/CHF's break of 0.9846 resistance argues that near term pull back form 0.9995 has completed at 0.9774 already. Stronger rally is now in favor back towards 0.9995. One focus is now on USD/CHF, as firm break of 0.9001 should confirm short term bottoming, and bring stronger rebound. Another focus is 1.1189 resistance in GBP/CHF. Firm break there will indicate that fall from 1.1412 has completed at 1.1412. The sideway pattern from 1.1574 (Oct high) should have then started another rising leg. In Europe, at the time of writing, FTSE is up 0.04%. DAX is up 0.28%. CAC is up 0.45%. Germany 10-year yield is up 0.0288 at 2.430. Earlier in Asia, Nikkei rose 0.15%. Hong Kong HSI rose 0.42%. China Shanghai SSE rose 0.67%. Singapore Strait Times dropped -0.36%. Japan 10-year JGB yield dropped -0.0027 to 0.460. |
