Yen buying emerges in early European session as markets turn cautious again. Rally in Asian stocks lost steam in the afternoon with China Shanghai SSE turning red. But for now, Canadian Dollar and New Zealand Dollar are both firm for now. WTI crude oil breached 56 handle on recovery and lifted the Loonie overnight. But the recovery is so far rather weak with corrective look. We might seen more downside in oil price ahead, which drags down Canadian again. On the other hand, European majors are generally the weakest ones today.
For the week, Sterling remains overwhelmingly the strongest one. While there is no sign of having an approvable Brexit deal yet, no-deal scenario is a big step further away. It will now take explicit consent in the Commons, by a vote on March 13, to trigger no-deal Brexit. Otherwise, it’s more likely that Article 50 will be extended for a short, limited time. Australian Dollar follows as second strongest for the week but it’s rather vulnerable. Canadian is the weakest on fall in oil prices after Trump tweeted it down.
In Asia:
- Nikkei closed up 0.50%.
- Hong Kong HSI is up 0.10%.
- Shanghai SSE is down -0.01%.
- Singapore Strait Times is flat.
- Japan 10-year JGB yield is up 0.0043 at -0.021.
Overnight:
- DOW dropped -0.13%.
- S&P 500 dropped -0.08%.
- NASDAQ dropped -0.7%.
- 10-year yield dropped -0.037 to 2.636.
- 30-year yield dropped -0.028 to 3.006. 3% handle looks vulnerable again.
