Sterling's selloff resumes today, after job data added to expectation that BoE would lag far behind Fed in tightening. Weak market sentiment sends commodity currencies lower. Thanks to buying against the Pound, Euro is so far the strongest one for today, leading Dollar, Yen and Swiss Franc. But still, Euro is far behind the greenback for the week. Overall, investor might start to turn cautious during the later part of today, as four central bank decisions lies ahead, starting with tomorrow's FOMC. Technically, the selloff in the Pound is finally making some progress with EUR/GBP breaking through 0.8617 resistance firmly. A break through 1.1969 support in GBP/CHF would seal the bearish case for Sterling. Such development could push GBP/USD even deeper through 1.2 handle with downside acceleration. In Europe, at the time of writing, FTSE is down -0.29%. DAX is down -0.18%. CAC is down -0.67%. Germany 10-year yield is up 0.025 at 1.662. Earlier in Asia, Nikkei dropped -1.32%. Hong Kong HSI closed flat. China Shanghai SSE rose 1.02%. Singapore Strait Times dropped -0.97%. Japan 10-year JGB yield rose 0.0013 to 0.256. |
