 The moves in the financial markets Sterling fall broadly today after much worse than expected PMI data raises concerns of recession ahead. On the other hand, Euro jumps as ECB officials continued to talk up July rate hike, while PMI data were solid. Still, the best performer today so far is Yen, which is supported by receding risk-on sentiment. Dollar is also trying to regain some ground. For the same reason, Aussie and Kiwi are turning softer. Technically, it looks like Euro and Sterling are diverging, which is in-line with the broader case that EUR/GBP is in medium term reversal. Immediate focus is now on 0.8617 resistance in the cross. Firm break there will extend the rebound from 0.8210 to 38.2% retracement of 0.9499 to 0.8201 at 0.8697. This level will be crucial in determining the underlying momentum in EUR/GBP. In Europe, at the time of writing, FTSE is down -0.08%. DAX is down -0.85%. CAC is down -0.93%. Germany 10-year yield is down -0.012 at 1.005. Earlier in Asia, Nikkei dropped -0.94%. Hong Kong HSI dropped -1.75%. China Shanghai SSE dropped -2.41%. Singapore Strait Times dropped -0.58%. Japan 10-year JGB yield dropped -0.0084 to 0.232. | 
