Entering into US session, Euro is mixed after ECB left monetary policy unchanged as widely expected. Focus will turn to President Mario Draghi’s press conference. But other than comments regarding Italy, there shouldn’t be anything that could move markets much.

For now, Australian Dollar is trading as the strongest one for today. The late rebound in Chinese stocks is a factor that’s supporting the Aussie. Indeed, while it’s all red in Asia, the Shanghai SSE composite closed up 0.02% at 2603.80, even defended 2600 handle. Swiss Franc is the weakest one. We’ve noticed that recently, the Franc has been much more sensitive to emerging markets than Eurozone or EU. And, today’s decline in USD/TRY is possibly a factor dragging down the Franc.

In Europe, at the time of writing:

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  • FTSE is down -0.12 at 6955
  • DAX is up 0.25% at 11219
  • CAC is up 1.13% at 5009
  • German 10 year yield is up 0.0032, just above 0.4 at 0.401
  • Italian 10 year yield is down -0.1032 at 3.514. German-Italian spread is below 320, an unsustainable level to Tria, but still way above 300.

Earlier in Asia:

  • Nikkei dropped sharply by -3.72% or -822.45 pts to 21268.73
  • Hong Kong HSI closed down -1.01 at 24944.46
  • China Shanghai SSE “rose” 0.02% to 2603.80
  • Singapore Strait Times dropped -0.63% to 3012.84.
  • 10 year JGB yield dropped -0.0206 to 0.114. It was above 0.15 just a few days ago. But BoJ might like to see it moving closing back to it’s allowed back of -0.1 to 0.1%.

USD/TRY is currently down 09.75% at 5.64. The recovery since last week could have completed after hitting 55 day EMA.


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