Entering into US session, Sterling is trading as the strongest one as supported by slightly stronger than expected wage growth. There could be some buying on expectation for the parliament to take over control on Brexit at a later stage, thus avoiding no-deal scenario. Technically, EUR/GBP’s break of 0.8728 minor support, which signals completion of rebound form 0.8617, also helps the pound elsewhere.
Swiss and Dollar follow as the second and third strongest as risk markets turn mixed. Eyes will be on US-China trade negotiations which will resume today. Ministerial meetings will start Thursday, working towards a trade MOU. On the other hand, New Zealand and Australian Dollar are the weakest ones today. Aussie is additionally weighed down by RBA minutes which showed much concerns on housing slump. Euro is the third weakest as German ZEW suggests there is no turnaround in the economy in first half at least.
In Europe, currently:
- FTSE is down -0.73%.
- DAX is down -0.22%.
- CAC is down -0.44%.
- German 10-year yield is down -0.011 at 0.105.
Earlier in Asia:
- Nikkei rose 0.10%.
- Hong Kong HSI dropped -0.42%.
- China Shanghai SSE rose 0.05%.
- Singapore Strait Times dropped -0.19%.
- Japan 10-year JGB yield dropped -0.0104 to 0.031.