Dollar remains the strongest one today , followed by Yen and then Sterling. On the other hand, New Zealand Dollar is the weakest one, followed by Canadian Dollar and then Swiss Franc. The greenback attempted to extend recent rise after super strong ISM manufacturing index. However, firstly, EUR/USD managed to rebound after touching 1.529 minor support. USD/JPY showed no reaction and stays in range of 110.68/111.82. USD/CHF is also held blow 0.9775 minor resistance. For now, there is no confirmation of underlying strength in the greenback yet. More is needed to trigger a decisive rally, possibly NFP later this week.
In other markets, a notable development in the surge in US treasury yields. At the time of writing, 30 year yield is up 0.051, 10 year yield up 0.044, and five year yield is up 0.035. That is, yields rise more in the long end. That’s a development that Fed hawk would like to see. in the stock markets, US indices are in red with DOW down -0.34%, S&P 500 down -0.4% and NASDAQ down -0.56%. Declines in the European markets were much more serious, with CAC down -1.13%, DAX down -1.1% and FTSE down -0.62%.
