Entering into US session, Swiss Franc is trading as the strongest one. It’s followed by Dollar as the second strongest as the greenback is trying to stage a rebound before weekly close. New Zealand Dollar is the third strongest. On the other hand, Sterling seems to be troubled by EU’s rejection of UK Prime Minister Theresa May’s Chequers Brexit proposals. It’s followed by Yen, which is the second weakest, on strong global risk appetite. Euro’s rally is losing some momentum after mixed PMI data.
Major European stock indices extend this week’s rebound. At the time of writing, FTSE is up 0.89%, DAX up 0.42%, CAC up 0.65%. German 10 year bund yield is dropping back -0.0065, back at 0.465. Yesterday’s break of 0.5 handle was possibly a false dawn. Earlier today, Nikkei closed up 0.82%, Hong Kong HSI gained 2.50%. Singapore Strait Times rose 1.17%. China Shanghai SSE added 2.50% to 2797.48. 2800 handle is now within touching distance for the SSE.
Nikkei’s rally is rather impressive this week, partly helped by the selloff in Yen. Immediate focus will be on 24129.34 high next week. Based on current upside acceleration, it’s likely that this handle is taken out firmly to resume the long term up trend.