 Selloff in Pound catches most currency related headlines today, as it slumped to a 37-year low against Dollar. The decline came after data showed retail sales contracted in both volume and value term in August, indicating that inflation was already biting into spending. In the background, the UK economic is already in recession. Still for now, commodity are even worse for the week. Dollar is the biggest winner, followed by Swiss Franc and Yen. The final picture will depend on development in risk sentiment in the last few hours. Technically, EUR/USD is so far resilient. But being capped below 4 hour 55 EMA, risk remains mildly on the downside for the near term. Retest of 0.9863 is in favor. Break there will resume larger down trend, and align the outlook with GBP/USD. In Europe, at the time of writing, FTSE is down -0.32%. DAX is down -1.73%. CAC is down -1.49%. Germany 10-year yield is down -0.006 at 1.763. Earlier in Asia, Nikkei dropped -1.11%. Hong Kong HSI dropped -0.89%. China Shanghai SSE dropped -2.30%. Singapore Strait Times rose 0.01%. Japan 10-year JGB yield dropped -0.0001 to 0.257. |
