Entering into US session, Yen is the weakest one for today as risk appetite returns to the European markets. Swiss Franc is the second weakest naturally, followed by New Zealand Dollar In particular, Franc CAC is lifted solidly by the massive 300 jet planes purchase from Airbus by China as President Xi Jinping visits EU. German 10-year yield also rises to -0.004, attempting to turn positive.
Meanwhile Sterling is the strongest one, lifted mildly by news that Brexiteers are starting to offer support for Prime Minister Theresa May’s Brexit deal. The argument is that, to them, May’s deal is definitely much better no Brexit, and even second referendum which could lead to no Brexit too. Also, after leaving EU, there are still chances to adjust the relationship by future Prime ministers. For now, Australian Dollar is the second strongest, follow by Canadian.
On the data front, German Gfk consumer confidence dropped to 10.4 but economic expectations improved. UK BBA mortgage approvals dropped notably to 35.3k in February. US will release housing starts and building permits, house price indices, and more importantly, consumer confidence.
In Europe, currently:
- FTSE is up 0.28%.
- DAX is up 0.25%.
- CAC is up 0.74%.
- German 10-year yield is up 0.0219 at -0.004.
Earlier in Asia:
- Nikkei rose 2.15%.
- Hong Kong HSI rose 0.15%.
- China Shanghai SSE dropped -1.51%.
- Singapore Strait Times rose 0.55%.
- Japan 10-year JGB yield rose 0.0176 to -0.66.
