 Dollar continues to power up today, as traders are rethinking Fed's policy path ahead. The odds of a hold at June 14 FOMC meeting has dropped to around 60%, as the economy continued to show resilience. The strong stock market rally this week is also helping. Canadian Dollar is currently following as second best, and then Swiss Franc. Aussie is the worst performer for the day so far, followed by Euro and Kiwi. While Yen is still the biggest loser for the week, selling has somewhat slowed a bit. Technically, Gold has finally taken out 1968.97 key near term support, as well as 55 D EMA today, as selloff from 2062.95 extends. The development should confirm rejection by 2074.48 record high. Fall from 2062.95 is at least a correction to rise from 1614.60, with potential as the fifth leg of the long term sideway pattern from 2074.48. In either case, deeper decline is now expected to 38.2% retracement of 1614.60 to 2062.95 at 1891.69. In Europe, at the time of writing, FTSE is up 0.38%. DAX is up 1.17%. CAC is up 0.62%. Germany 10-year yield is up 0.0971 at 2.438. Earlier in Asia, Nikkei rose 1.60%. Hong Kong HSI rose 0.85%. China Shanghai SSE rose 0.40%. Singapore Strait Times rose 0.27%. Japan 10-year JGB yield rose 0.0156 to 0.385. |
