 In a surprised move, BoE announced to intervene in the gilt markets. While 10-year gilt yield drops notably on the news, the recovery in FTSE is just mild. Sterling also just fluctuates and it's trading as the weakest one for the day. On the other hand, Swiss Franc buyers jump in on worsening energy crisis in Europe, while Yen also firms up slightly. Dollar, Euro and Aussie are on the softer side. Technically, as US 10-year yield appears to be rejected by 4% handle for now, there is prospect of further rebound in Yen. So far, EUR/JPY's recovery from 137.32 has bee rather weak, and deeper decline is in favor. Break of 137.32 will resume the fall from 145.62 towards 133.38 key support. That, if happens, would also be followed by break of 148.93 temporary low in GBP/JPY. In Europe, at the time of writing, FTSE is down -0.63%. DAX is down -0.69%. CAC is down -0.81%. Germany 10-year yield is down -0.018 at 2.212. UK 10-year yield is down -0.377 at 4.131. Earlier in Asia, Nikkei dropped -1.50%. Hong Kong HSI dropped -3.41%. China Shanghai SSE dropped -1.58%. Singapore Strait Times dropped -1.55%. Japan 10-year JGB yield dropped -0.0028 to 0.252. |
