Entering into US session, Sterling pares back some losses and recovers broadly today. The recovery is believed to be triggered by rumor that the EU is considering to offer a major Brexit concession to the UK. But there is so far no detail on the deal, and it remains just a rumor. Nonetheless, it’s no too surprising for the oversold Pound to have a mild recovery. On the other hand, Dollar is trading as the second strongest one for today. But upside is capped by yesterday’s high except versus New Zealand Dollar.
Kiwi remains the weakest one for today after more dovish than RBNZ statement. Australian Dollar truly lacks a clear direction. It was the strongest one in Asian session as lifted by stocks rebound. But it’s now the second weakest. Euro follows as the third weakest for today as it’s rebound lost steam.
Over the week, New Zealand Dollar is the weakest one, followed by Sterling. Australian Dollar is the strongest one, followed by Euro.
In other markets, European stocks are trading generally softer today with DAX and CAC both down -0.4%. FTSE is down -0.74%. Earlier in Asia, major indices closed mixed. China Shanghai SSE closed up 1.83% at 2794.38, can’t hold on to 2800 handle. Hong Kong HSI rebounded 0.88%. But Nikkei and Singapore Strait Times are down -0.2% and -0.4% respectively.
WTI crude oil is extending weakness after rejection from 70 handle. It’s now back below 67 at 66.92 and looks set to dip further. The boring gold continues to engage in sideway consolidation around 1210.
Looking ahead, Canada will release housing starts and new housing price index. US will release PPI, jobless claims and wholesale inventories.
