Fri, Oct 07, 2022 @ 06:13 GMT
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Into US session: Sterling torn apart by CPI and Prime Minister May

Sterling had a roller coaster ride today. It’s firstly shot up by stronger than expected CPI, at 2.7% yoy in August, which beat BoE’s own projections. However, it’s then hammered down by news that UK Prime Minister Theresa May rejects EU Michel Barnier’s “improved” Irish border proposal. At the time of writing, the Pound is trading as the second weakest one, just next to Swiss Franc, followed by Dollar. On the other hand, Australian Dollar continues to lead New Zealand and Canadian Dollar up on improved risk appetite.

 

In European markets, FTSE is currently up 0.29%, DAX up 0.19%, CAC up 0.23%. German 10 year yield drops a little bit by -0.003 at 0.483. It’s still on track to test key resistance zone around 0.5.

Talking about yield, it should be noted that 10 year Japan JGB yield rose 0.0058 to 0.122, hitting the highest level since January 2016.

Earlier in Asia, Nikkei closed up 1.08%, Hong Kong HSI gained 1.19% and Singapore Strait Times rose 1.19%. China SSE rose 1.14% to 2730.85, taken 2700 handle out firmly. There was no impact on sentiments after this week’s escalation in US-China trade war. SSE is now suddenly looking back to 2800 resistance zone again.

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