Entering into US session, Yen is back as the star performer, followed by Swiss Franc. This time, weaker than expected economic data were largely shrugged off by stocks and bond investors. Instead, renewed worry over Italy’s fiscal health boosted Italian yield up. German 10-year yield, on other hand, is in free fall on safe haven flow, breaking -0.11 handle. US 10-year yield also dives through 2.38 handle at the time of writing. Both developments help lift Yen and Swiss Franc, Dollar follows as third strongest for now.

Australian Dollar is staying as the weakest one for today, followed by New Zealand Dollar. These two are probably the only ones who care about resumption of slowdown in China. Situation could only get worse with more tariffs ahead. Euro is currently the third weakest for today. US retail sales and Canada CPI will be the next triggers for volatility.

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Technically, EUR/JPY and GBP/JPY resume recent decline by breaking through 122.48 and 141.20 temporary lows. EUR/USD will likely take on 1.1173 minor support. Break will raise the chance of down trend resumption and target 1.1111 low next.

In Europe, currently:

  • FTSE is down -0.04%.
  • DAX is down -0.60%.
  • CAC is down -0.48%.
  • German 10-year yield is down -0.0050 at -0.117.
  • Italian 10-year yield is up 0.0345 at 2.77.

Earlier in Asia:

  • Nikkei rose 0.58%.
  • Hong Kong HSI rose 0.52%.
  • China Shanghai SSE rose 1.91%.
  • Singapore Strait Times dropped -0.15%.
  • Japan 10-year JGB yield rose 0.001 to -0.05.


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