Entering into US session, Euro trades mildly softer after ECB left interest rates unchanged as widely expected. Main refinancing rate is held at 0.00%, marginal lending facility rate at 0.25%, deposit facility rate at -0.40%. Yen remains the strongest one as supported by strength in JGB yields. 10 year JGB yield hit as high as 0.099 before closing at 0.09. Australian Dollar and New Zealand reversed earlier gain and turn broadly lower. On the other hand, Dollar is regaining some ground for today.

But for the week, Canadian Dollar remains the strongest one, followed by Yen. Euro and Dollar are taking turn to be the weakest. ECB President Mario Draghi holds the key to unlock a direction in EUR/USD. But he’s likely hold it to his chest in today’s press conference.

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In other markets, stocks are mixed. Germany responds very well to the EU Juncker’s assessment and Trump’s concessions. At the timing of writing, DAX is up 1.38%, CAC is up 0.35%. FTSE, on the other hand, is flat. Risk aversion was dominant in Asia though. China Shanghai SSE closed down -0.74%, Hong Kong HSI down -0.48%. Nikkei also lost -0.12%.

The offshore Chinese yuan continues to stabilize against dollar today. USD/CNH once dipped to as low as 6.733 earlier today but recovered to above 6.78. For now, there is no clear sign of a trend reversal yet. That is Yuan is still technically in a near term down trend. But at least, it’s past the climax of selloff. And we’d likely see more consolidation below 6.85.

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