 Today's trading session saw broad selling pressure on commodity currencies, partially due to risk-off sentiment prevalent in the market and partly due to the dovish rate hike from RBNZ. As it stands, Euro seems to be the major benefactor, in part due to its rebound against Swiss Franc. However, despite a slight recovery, the common currency is still considered bearish against Dollar in the near term. The uplift in Sterling following the Consumer Price Index (CPI) data proved to be short-lived. Yen, for its part, is consolidating its recent losses and appears still poised for a near-term decline. From a technical perspective, EUR/CHF could be a focal point for the remainder of the day. Break of 0.9760 resistance level will confirm short-term bottoming at 0.9675, with a bullish convergence condition in 4H MACD. This could lead to a stronger rebound towards 0.9878 resistance level. If this occurs, stronger bounce in EUR/CHF could potentially aid Euro in rebounding further against both the Dollar and Sterling. In Europe, at the time of writing, FTSE is down -1.77%. DAX is down -1.68%. CAC is down -1.76%. Germany 10-year yield is down -0.0206 at 2.451. Earlier in Asia, Nikkei dropped -0.89%. Hong Kong HSI dropped -1.62%. China Shanghai SSE dropped -1.28%. Singapore Strait Times dropped -0.12%. Japan 10-year JGB yield rose 0.0045 to 0.409. |
