Overall sentiments in the financial markets remain rather fragile today, despite some stabilization. Major European indexes are trading slight up while DOW futures also gains over 150 pts at the time of writing. But there appears to be little support for treasury yield, with Germany 10-year yield below -0.4 handle at -0.42. US 10-year yield is also extending freefall, appearing to be targeting 1% handle eventually. In the currency markets, Dollar overtakes Yen as the strongest today. New Zealand Dollar is currently the weakest, catching up with others, Sterling is also rather weak, as selloff intensifies in crosses too. Technically, we'd pay some attention to European-Sterling crosses for the rest of the week. EUR/GBP's rally is accelerating and break of 0.8670 resistance will solidify that case that it's resuming whole rebound from 0.8470. That is, we could see further upside acceleration through 0.8718 resistance quickly. Meanwhile, GBP/CHF also broke out to the downside this week, resuming the fall from 1.3070. Such decline could also accelerate down to 100% projection of 1.3070 to 1.2579 from 1.2853 at 1.2362 before finding a bottom that. In Europe, at the time of writing, FTSE is up 0.34%. DAX is up 0.15%. CAC is up 0.66%. Germany 10-year yield is down -0.050 at -0.433. Earlier in Asia, Nikkei dropped -0.96%. Hong Kong HSI dropped -0.84%. China Shanghai SSE dropped -0.07%. Japan 10-year JGB yield dropped -0.0033 to 0.014. |
