Euro is attempting to rally after ECB surprisingly pre-commit to rate hikes in July and September. Germany 10-year yield also jumps to 1.45% in reaction. Commodity currencies turn slightly weaker on overall sluggish market sentiment. Dollar is mixed for now, and will need some fresh inspiration from tomorrow's CPI release. Meanwhile, Yen continues to digest recent losses, await next move. Technically, EUR/AUD's break of 1.4965 minor resistance suggests that pull back from 1.5277 is over at 1.4759, and rebound from 1.4318 is in another rising leg to 1.5345 key resistance. EUR/CAD's breach of 1.3538 minor resistance also suggest short term bottoming at 1.3387, just ahead of 1.3383 low. Now, focus is on when EUR/USD will break through 1.0786 temporary top, and when EUR/GBP will break through 0.8617 resistance. In Europe, at the time of writing, FTSE is down -0.82%. DAX is down -1.24%. CAC is down -1.05%. Germany 10-year yield is up 0.0842 at 1.440. Earlier in Asia, Nikkei rose 0.04%. Hong Kong HSI dropped -0.66%. China Shanghai SSE dropped -0.76%. Singapore Strait Times dropped -0.50%. Japan 10-year JGB yield rose 0.0024 to 0.250. |
