Entering into US session, Euro leads European majors broadly lower today. Weak PMIs and slowdown worry is a factor weighing on Euro. Additionally, in the background, Italy’s budget concern remains. The key officials of the populist government appear not backing from on the 2.4% deficit target for 2019, despite EU’s request to amend. Sterling is trading as the second weakest on never-ending Brexit worries. Swiss Franc is dragged down but the other two. On the other hand, Australia, US and Canadian Dollar are the strongest ones. Easing risk aversion is a key factor keep these currencies buoyed. Yen is mixed, partly because risk aversion eased, and partly due to the sharp fall in JGB yield.
Technically, EUR/USD has taken out 1.1431 support to resume the fall from 1.1814, and 1.1300 low is next target. EUR/CHF’s break of 1.1392 minor support argues that recent rebound from 1.1173 has completed and deeper fall would be seen back to this low. GBP/USD also breaks 1.2921 and should be heading to 1.2661/2784 support zone. USD/CHF also breaches 0.9980 to extend recent rise fro 1.0067 key resistance.
In European markets, at the time of writing:
- FTSE is up 1.01% at 7.025.50
- DAX is up 0.81% at 11365.23
- CAC is up 1.13% at 5023.87
- German 10 year yield is back up 0.0022 at 0.414, trying to defend 0.4 handle
- Italian 10 year yield is down -0.013 at 3.567
- Gold is back below 1230.
Earlier in Asia:
- Nikkei closed up 0.37% at 22091.18
- Singapore Strait Times up 0.02% at 3032.08
- China Shanghai SSE up 0.33% at 2603.30, reclaimed 2600
- But Hong Kong HSI lost -0.38% to 25249.78
- 10 year JGB yield dropped quite notably by -0.0151 to 0.135
