Risk sentiments stabilized in European markets as major indices are trading mixed. US futures also point to a mild recovery at open. Focus turned to selloff in Dollar today as Trump continued with his verbal intervention on Fed’s monetary policy. In, he asked Fed policy makers to abandon “meaningless numbers”. Instead, they should “feel the market”.
I hope the people over at the Fed will read today’s Wall Street Journal Editorial before they make yet another mistake. Also, don’t let the market become any more illiquid than it already is. Stop with the 50 B’s. Feel the market, don’t just go by meaningless numbers. Good luck!
— Donald J. Trump (@realDonaldTrump) December 18, 2018
Dollar is currently the weakest one for today. Canadian follows as second weakest as WTI crude oil extends recent decline to as low as 48.09, in spite of Dollar weakness. Swiss Franc is the third weakest. On the other hand, New Zealand Dollar is the strongest one for today, followed by Sterling, and then Yen.
But technically, EUR/USD, GBP/USD AUD/USD and USD/CAD are staying in range. USD/JPY is trying to draw support from 112.23 support. There is not follow through selling in USD/CHF yet after breaching 0.9911. Dollar bears seem refusing to commit yet, as meaningless or not, Fed will release another set of numbers in economic projections tomorrow. They’re the ones critical for 2019 rate path.
In European markets, at the time of writing:
- FTSE is down -0.41%
- DAX is up 0.38%
- CAC is down -0.14%.
- German 10 year yield is down -0.0178 at 0.242
- Italian 10 year yield is up 0.004 at 2.953
Earlier in Asia:
- Nikkei closed down -1.82%
- Singapore Strait Times dropped -2.21%
- Hong Kong HSI dropped -1.05%
- China Shanghai SSE dropped -0.82%
- Japan 10 year JGB yield dropped another -0.0088 to 0.028