HomeLive CommentsInto US session: CAD strong on USMCA, DAX and German yield too

Into US session: CAD strong on USMCA, DAX and German yield too

Entering into US session, Canadian Dollar remains the strongest one for today as boosted by the new USMCA that replaced NAFTA. If should be reminded that the Loonie’s rally took off last week after stronger than expected GDP boosted the chance of October BoC hike. Additional, WTI crude oil stays firm above 73 hand after OPEC triggered rally. All three factors are Loonie positive. Sterling and Euro follow as the second and third strongest ones. On the other hand, Yen, Kiwi and Swiss Franc are the weakest ones for now. Dollar is mixed.

European stocks seemed to be lifted by the USMCA news too, in particular DAX. At the time of writing,DAX is up 0.58%, CAC up 0.28% and FTSE up 0.06%. German 10 year bund yield also rises 0.028, back at 0.500. However, Italian 10 yield also continues last week’s rally and is up 0.036 at 3.178. The sky is not all cleared for the Eurozone.

Earlier today, Nikkei extended recent strong rise and closed up 0.52% at 24245.76. Singapore Strait Times reversed earlier gains and closed down -0.05% at 3255.46. Gold’s rebound lost steam quickly and is back at 1186.36.

Today’s rally in Nikkei is in line with bullish view that the long term up trend is resuming after taking out 24129.34 resistance. Further rise should be seen to 100% projection of 20347.49 to 23050 from 22172.90 at 24875.8 next. This will be a positive factor for USD/JPY. In particular, if US treasury yields follow German yield higher today, we’ll see more strength in USD/JPY.

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