 Dollar exhibits renewed vigor in the early US trading hours, marking broad-based gains. While today's data showcased robust initial jobless claims and a mixed bag for durable goods orders, these don't seem to be the primary catalysts fueling the Dollar's ascent. A more plausible driver is the resurgence of treasury yield, with the 10-year yield reclaiming territory above 4.2% mark. The tech-heavy NASDAQ is also poised for an upbeat opening, bolstered by Nvidia's impressive post-market earnings release from the prior day. However, DOW futures tell a more muted tale. As the day progresses, Canadian Dollar is tailing the US counterpart, as the day's second-best performer. Euro trails close behind. At the other end of the spectrum, Kiwi and Aussie languish, with Sterling also underperforming. The Japanese Yen and Swiss Franc exhibit a mixed performance, failing to set a clear direction. Technically, USD/CHF's break of 0.8826 temporary top suggest that rebound form 0.8851 is resuming. Focus will be on whether EUR/USD and GBP/USD would follow by breaking through 1.0801 and 1.2613 temporary lows. Also, USD/CHF could be marching back to 146.55 resistance too. Break of all these level together will confirm underlying bullish momentum in the greenback. However, such a rally may hinge on hawkish insights from Fed Chair Jerome Powell and fellow attendees at the Jackson Hole Symposium. In Europe, at the time of writing, FTSE is up 0.25%. DAX is up 0.06%. CAC is up 0.14%. Germany 10-year yield is up 0.0030 at 2.524. Earlier in Asia, Nikkei rose 0.87%. Hong Kong HSI rose 2.05%. China Shanghai SSE rose 0.12%. Singapore Strait Times rose 0.21%. Japan 10-year JGB yield dropped -0.0284 to 0.649. |
