The forex markets are treading water today. Sentiments were lifted by China's rate cut. UK retail sales came in stronger than expected. ECB officials continued to talk up the prospect of a July hike. But none of these triggered any meaningful moves in the markets. For the week, Swiss Franc is still the best performer, followed by Sterling and Kiwi. Dollar is the worst performing, finally ending the winning streak. Canadian and Yen are the next weakest. Technically, focuses will stay on whether EUR/USD could break through 1.0641 resistance to confirm successfully defending 2017 low. But Euro itself is not looking too well in crosses, in particular in EUR/CHF. At the same time, EUR/GBP and EUR/AUD could extend the decline that started from last week's high, after completing current consolidations. Such development could drag down EUR/USD. Anyway, Euro would probably wait until next week to unveil the next move. In Europe, at the time of writing, FTSE is up 1.59%. DAX is up 1.66%. CAC is up 1.16%. Germany 10-year yield is down -0.0071 at 0.945. Earlier in Asia, Nikkei rose 1.27%. Hong Kong HSI rose 2.96%. China Shanghai SSE rose 1.60%. Singapore Strait Times rose 1.56%. Japan 10-year JGB yield dropped -0.0025 to 0.240. |
