The forex markets are rather mixed today. Dollar extended yesterday’s selloff, on free falling treasury yields and after St. Louis Fed James Bullard became the first policymaker calling for a rate cut. But the greenback is not totally giving up yet. EUR/USD is struggling around 1.1263 resistance, AUD/USD around 0.6988 resistance and USD/CAD around 1.3429 support. There is no follow through selling in Dollar yet.
Australian Dollar is currently joint strongest with Canadian. RBA cut interest rate to 1.25% and Governor Philip Lowe deliberately noted that more rate cuts are on the table. But Aussie just shrugged them off. Euro is next strongest but upside is capped by mixed economic data. Eurozone CPI slowed more than expected to 1.2% yoy in May but unemployment rate dropped to record low at 7.6% in April. Sterling is also firm even though UK PMI construction dropped back into contraction region. Swiss Franc and Yen are the weakest ones for today, as European indices are trading higher together DOW futures.
In Europe, currently:
- FTSE is up 0.25%.
- DAX is up 1.14%.
- CAC is up 0.28%.
- German 10-year yield is down -0.0121 at -0.211.
Earlier in Asia:
- Nikkei dropped -0.01%.
- Hong Kong HSI dropped -0.49%.
- China Shanghai SSE dropped -0.96%.
- Singapore Strait Times rose 0.61%.
- Japan 10-year JGB yield dropped -0.074 to -0.10.
