Entering into US session, Euro is trading as overwhelmingly the weakest one as markets respond rather negatively to Italy’s budget deficit plan. Additionally, Eurozone core CPI unexpectedly slowed in September, pointing to risk of reducing underlying price pressure. Euro is the second weakest after Swiss Franc for the week, but it will very likely over take the place should the selloff continue. On the other hand, Canadian Dollar and Australian Dollar are the strongest ones today. But that’s mainly because Dollar’s rally slowed ahead of PCE inflation data.
Major European indices are trading all in red at the time of writing. DAX leads the way lower, down -1.35%, CAC is down -0.79% and FTSE is down -0.63%. Italian 10 year yield is trading up 03.329 at 3.221. German 10 year bund year is down -0.062 % 0.470. Suddenly, 300 yield spread is not too far away again.
Risk appetite was strong in Asia thought. Nikkei reached as high as 24286 and breached 24129.34 resistance. But it closed at 24120.04, up 1.36%. Hong Kong HSI was up 0.26%, China Shanghai SSE up 1.06% and Singapore Strait Times was up 0.64%.