Entering into US session, the forex markets decouple from the risk markets today. Global stock markets, from Asia to Europe, trade broadly higher today. But we’re seeing Yen as the strongest while commodity currencies are the weakest ones. Nevertheless, for now, with the exception of USD/JPY, all major pairs are trading in Friday’s range. It’s a consolidative market without a clear direction.
News flow is slow with Germany Ifo as the only futures. Improvement in German business climate paint a positive picture for Q3. Ifo said the readings are consistent with 0.5% qoq in in Germany. But that doesn’t translate into strength in Euro.
USD/TRY is given a up today and hits at high as 6.2975 so far. It’s currently up 3.8%. As long as 6.3460 minor resistance holds, there’s nothing to worried about yet. The pair is merely staying in a sideway pattern. And the selloff in Lira isn’t reflected in corresponding moment in the forex markets so far.
In other markets, UK is on bank holiday today. DAX is up 0.46% while CAC is up 0.38% at the time of writing. Asian stocks flexed muscles with Hong Kong HSI gained 2.17%, China Shanghai SSE added 1.89%, Singapore Strait Times rose 0.39%. Nikkei also closed up 0.88%. WTI crude oil is nearly flat at 68.69, still some distance from 70 handle. Gold trades sligthly lower by -0.07%. But recent rebound from 1160 is still expected to extend higher.
