 Dollar surges in early US session as boosted by stronger than expected inflation readings. Indeed, the core PCE inflation hit the highest level since 1991. With the current buying momentum, the greenback is likely to end the week on a high note, with prospect of closing as the strongest. On the other hand, commodity currencies are in rather steep decline, even the Kiwi. But Yen is more likely to end the week as the worst performer. Technically, EUR/USD's break of 1.2160 support indicates short term topping, deeper fall could now be seen back to 1.1985 support. Next focus will be 0.9046 resistance in USD/CHF and break there should confirm short term bottoming at 0.8929. Meanwhile, USD/JPY is on track to retest 110.95 high. In Europe, at the time of writing, FTSE is up 0.28%. DAX is up 0.67%. CAC is up 0.68%. Germany 10-year yield is down -0.0109 at -0.179. Earlier in Asia, Nikkei rose 2.1%. Hong Kong HSI rose 0.04%. China Shanghai SSE dropped -0.22%. Singapore Strait Times rose 0.43%. Japan 10-year JGB yield rose 0.0094 to 0.085. |
