Entering into US session, Australian Dollar remains the strongest one for today following stronger than expected CPI reading. Canadian Dollar follows closely with help from rebound in oil price. However, AUD/USD is still held below 0.7235 resistance. USD/CAD is kept above 1.3180 support. Thus, both pairs are still bounded in near term consolidations.

Instead, Dollar catches bids against both Yen and Swiss Franc after stronger than expected ADP job data. USD/CHF is already pressing 0.9990 resistance, with help from strong rally in EUR/CHF. USD/JPY is also heading back to 110.00. We might see upside breakout in these two pairs later in the session. But the greenback’s fate will depend on FOMC statement and press conference, as well as any news on US-China trade negotiations.

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Meanwhile, Sterling is mildly higher today as Brexit uncertainties continue. The Pound is the weakest for the week following yesterday’s Brexit development. While UK Prime Minister Theresa May is seeking re-negotiation on Irish backstop, EU shows no sign of backing down from the stance of not reopening negotiation.

In European markets:

  • FTSE is up 1.67%.
  • DAX is down -0.29%.
  • CAC is up 0.75%.
  • German 10-year yield is down -0.0123 at 0.191, back below 0.2 handle.

Earlier in Asia:

  • Nikkei closed down -0.52%.
  • Hong Kong HSI rose 0.40%.
  • China Shanghai SSE dropped -0.72%.
  • Singapore Strait Times dropped -0.42%.
  • Japan 10-year JGB yield dropped -0.0014 to 0.003.


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