HomeLive CommentsAsian update: Sterling strong ahead of Brexit vote, Yen soft as China...

Asian update: Sterling strong ahead of Brexit vote, Yen soft as China lifts stocks

Risk sentiments are having an about turn after China pledges to work on a strong start in 2019. The rebound in is so far more than enough to reverse yesterday’s selloff after ugly Chinese trade data. In the background, there is optimism of a deal between US and China to resolve the trade conflicts. Trump also reiterated yesterday again that “we’re going very well with China” and “we are going to able to do a deal”.

In the currency markets, Yen is the weakest one for today so far, followed by Swiss Franc and then Dollar. New Zealand Dollar leads commodity currencies higher. But for the week, Sterling is the strongest one after yesterday’s surge. All eyes will be on the Brexit meaningful vote today, and the subsequent actions after the deal is defeated in the Commons.

At the time of writing:

  • Nikkei is up 0.9%
  • Hong Kong HSI is up 1.63%
  • Shanghai SSE is up 0.90%
  • Singapore Strait Times is up 1.31%
  • 10 year JGB yield is down -0.0128 at 0.013, staying positive

Overnight:

  • DOW dropped -0.36%
  • S&P 500 dropped -0.53%
  • NASDAQ dropped -0.94%
  • 10-year yield rose 0.009 to 2.710
  • 30-year yield rose 0.023 to 3.060

US yield curve remains inverted between 1-year and 5-year. But it’s flattened much in the region. Also, strength is seen at the long end, with 30-year yield keeping 3% handle. Developments are so far positive.

Featured Analysis

Learn Forex Trading