 Euro turns weaker after ECB's expected rate hike. Downside momentum is also picking up when ECB President Christine Lagarde indicated that even minor alterations in the statement's phrasing were intentional. ECB has shifted its wording from interest rates "will be brought to" to will be "set" at a sufficiently restrictive level, providing a basis to that it's now restrictive enough for a pause. Meanwhile, Dollar is making a robust comeback, triggered by stronger than expected GDP data, among other positive economic indicators. Despite being the second weakest currency for the week so far, sharing the spot with Euro, the greenback now appears to have a chance to alter its positive given the current momentum. However, the eventual picture for the week remains uncertain given that Yen might have some moves, as BoJ gears up for its policy announcement tomorrow. Meanwhile, it's starting to look hard for commodity currencies to maintain earlier gains. On the technical front, Gold experienced a downturn with the Dollar's resurgence, having failed to surpass the 1987.22 resistance mark. The consolidation from 1987.22 is extending with another drop. However, prospects for a further rise are still viable as long as the 1945.57 support level holds. Nevertheless, a firm break below 1945.57 could indicate the completion of the overall rebound from 1892.76 and may serve as a confirmation signal for an extended rally in the greenback. In Europe, at the time of writing, FTSE is up 0.36%. DAX is up 1.36%. CAC is up 1.89%. Germany 10-year yield is down -0.047 at 2.439. Earlier in Asia, Nikkei rose 0.68%. Hong Kong HSI rose 1.41%. China Shanghai SSE dropped -0.20%. Singapore Strait Times rose 0.98%. Japan 10-year JGB yield dropped -0.0071 to 0.441. |
