Entering into US session, the forex markets remain generally in tight range as risk sentiments are stabilized by slightly better than expected German Ifo. Most notably, German 10-year bund yield recovered some ground and turned positive to 0.006 briefly. However, it should be noted that the implications of Ifo data were not much different from last week’s PMIs. That is, manufacturing remains a weak spot in the German economy, with the component declined for the six month in a row. The improvements in headline Business Climate was due to improvements in services, trade and construction.
Australian and New Zealand Dollar are the strongest ones for today so far. Sterling is the weakest, await resumption of Brexit debate in the Commons. Yen is the second weakest as risk aversion receded mildly.
In Europe, currently:
- FTSE is down -0.48%.
- DAX is down -0.19%.
- CAC is down -0.21%.
- German 10-year yield is up 0.0082 at -0.003.
Earlier in Asia:
- Nikkei dropped -3.01%.
- Hong Kong HSI dropped -2.03%.
- China Shanghai SSE dropped -1.97%.
- Singapore Strait Times dropped -0.91%.
- Japan 10-year JGB yield dropped -0.119 to -0.085.
