The currency markets faced significant shifts today, notably with Sterling and Swiss Franc, which are enduring considerable selloffs. Both BoE and SNB opted to maintain their current interest rates, prompting speculation that these institutions might have peaked in their tightening cycles. However, Australian Dollar bore the brunt of today's market sentiment, emerging as the day's biggest loser, possibly due to escalating risk aversion. This sentiment has been echoed in major global indexes, most likely influenced by Fed hawkish hold yesterday coupled which also triggered soaring treasury yields. On the flip side, Japanese Yen is shining as the day's top performer. This strength is, in part, attributed to 10-year JGB yield surpassing 0.75% mark. Market participants are also possibly adjusting their positions in anticipation of a potentially hawkish surprise from BoJ in the upcoming Asian trading session. Following closely,Dollar maintains its robust position, though USD/JPY pair continues to show signs of strain ahead of 150 mark. Euro is also gaining a bit traction, but only benefiting from trades against the beleaguered Swiss Franc and Sterling. Meanwhile, Canadian Dollar's performance is mixed, retracting much of the gains driven by this week's CPI data. Technically, CHF/JPY's fall from 166.57 resumes today on broad-based Swiss Franc weakness. Considering bearish divergence condition in D MACD, this decline is probably corrective whole rise from 140.21. Sustained trading below 55 D EMA (now at 163.27) will add more credence to this case. Deeper fall should then be seen to 158.80 support, or possibly further to 38.2% retracement of 150.21 to 166.57 at 156.50. In Europe, at the time of writing, FTSE is down -0.43%. DAX is down -1.39%. CAC is down -1.72%. Germany 10-year yield is up 0.0658 at 2.771. Earlier in Asia, Nikkei fell -1.37%. Hong Kong HSI fell -1.29%. China Shanghai SSE fell -0.77%. Singapore Strait Times fell -1.21%. Japan 10-year JGB yield rose 0.0285 to 0.754. |
