 Extreme volatility was seen in the markets in the past 24 hours. Yen rebounds broadly today after Japan confirmed that "decisive" currency intervention was made. That came after BoJ stood pat and pledged to keep rate at low level. Swiss Franc was sold off sharply after SNB hiked 75bps, but hinted at the possibility of a pause. Sterling is mildly firmer after BoE delivered 50bps rate hike, with split votes among policymakers. For now, Yen is the strongest one for the week, followed by Dollar, and then Aussie. Kiwi is still the worst, followed by Swiss Franc and Euro. Technically, it's still a bit early to conclude that Yen is reversing course. A focus is on USD/JPY's reaction to 139.37 resistance turned support. As long as this level holds, there is chance of another take on 1998 high at 147.68. However, sustained break of 139.37 will argue that a medium term top was already formed and deeper correction could be seen back towards 130.38 support as traders unwind positions. In Europe, at the time of writing, FTSE is down -0.28%. DAX is down -0.71%. CAC is down -0.77%. Germany 10-year yield is down -0.0137 at 1.878. Earlier in Asia, Nikkei dropped -0.58%. Hong Kong HSI dropped -1.61%. China Shanghai SSE dropped -0.27%. Singapore Strait Times rose 0.04%. Japan 10-year JGB yield dropped -0.0163 to 0.245. |
