 European major currencies are making a notable stride today, with Sterling at the forefront. The Pound ascent is attributed to the historic high recorded in UK regular wage growth. This surge adds further weight to BoE dilemma, pushing it to seriously consider additional monetary tightening in the upcoming month. While Dollar is making efforts to recoup some of its recent losses, spurred by positive retail sales data surpassing expectations, its upward momentum is noticeably tepid. Canadian Dollar, despite higher than expected inflation figures, has largely been indifferent. This places it in tandem with Australian and New Zealand Dollars, both vying for the least impressive performance of the day. Floating somewhere in the midst, Japanese Yen presents a mixed bag—losing ground against Dollar and Europeans, yet holding its own versus commodity-linked currencies. Technically, Gold is now approaching key support level at 1892.76 as the fall from 1987.22 extends. Strong rebound from current level, followed by break of 1920.74 minor resistance, will at least indicate some stabilization, with prospect for further rise back towards 1987.22 resistance. However, sustained break of 1892.76 will risk downside acceleration to 100% projection of 2062.95 to 1892.76 from 1987.22 at 1817.06. Under such a bearish scenario, this would likely serve as a green light for the Dollar to momentum, propelling it higher against other major rivals. In Europe, at the time of writing, FTSE is down -1.20%. DAX is down -0.78%. CAC is down -0.88%. Germany 10-year yield is up 0.0528 at 2.691. Earlier in Asia, Nikkei rose 0.56%. Hong Kong HSI dropped -1.03%. China Shanghai SSE dropped -0.07%. Singapore Strait Times dropped -0.46%. Japan 10-year JGB yield rose 0.0131 to 0.632. |
