Entering into US session, Euro is the weakest one for today, overshadowing Aussie and Sterling. Euro was knocked down by ECB President Mario Draghi’s comments, which suggests that more monetary stimulus is underway. Additionally, German ZEW economic sentiments also tumbles sharply from -2.1 to -21.1 in June. German 10-year yield also dropped to new record low at -0.319, down -0.075. The development also drags down US 10-year yield, now at 2.022, down -0.068.
Sterling is the second weakest, as markets are pricing in no-deal Brexit as Boris Johnson is taking lead in Conservative leadership race. Australian Dollar is third weakest after RBA minutes said further rate cut is more likely than not. On the other hand, Yen is the strongest for today, as boosted by free fall in German and US yields. Dollar is third strongest, ignoring Trump’s complaint on Draghi’s comments.
In Europe, currently:
- FTSE is up 0.96%.
- DAX is up 1.43%.
- CAC is up 1.57%.
- German 10-year yield is down -0.0735 at -0.316.
Earlier in Asia:
- Nikkei dropped -0.72%.
- Hong Kong HSI rose 1.00%.
- China Shanghai SSE rose 0.09%.
- Singapore Strait Times rose 0.96%.
- Japan 10-year yield dropped -0.0032 to -0.129.