Entering into US session, Yen and Dollar remain the weakest major currencies today, on optimism that US and China could deliver a draft trade memorandum of understanding this week. But it should be noted that while Asian stocks closed sharply higher, European stocks are just mixed. Investors are not overwhelmingly convinced. With US on President’s Day holiday, the markets could turn quiet for the result of the day.
Staying in the currency markets, Euro and Sterling are the strongest one so far. With a lack of economic data, Euro’s strength is merely seen a technical rebound, paring recent losses. Bundesbank suggested that German economy will remain subdued in H1. With the assumption of normalization in the car industry, there is prospect of a rebound. But then, there is risk of US auto tariffs. Any, Euro will first look into ECB meetings and PMIs this week first. Sterling also look into employment data tomorrow.
In Europe, currently:
- FTSE is down -0.11%.
- DAX is down -0.22%.
- CAC is up 0.14%.
- German 10-year yield is up 0.0111 at 0.117.
Earlier in Asia:
- Nikkei rose 1.82%.
- Hong Kong HSI rose 1.60%.
- China Shanghai SSE rose 2.68%.
- Singapore Strait Times rose 0.81%.
- Japan 10-year JGB yield rose 0.002 to -0.019.
