While the forex markets have been directionless for a while, Dollar’s rally entering into US session, together with Yen, could finally bring back lives. In particular, EUR/USD breaks 1.1534 minor support which suggests completion of corrective rebound from 1.1431. We might see retest of this low soon. Ideally, we should see break of 0.9954 resistance in USD/CHF, 1.0381 minor support in GBP/USD and 0.7098 in AUD/USD to confirm the underlying strength of the greenback.
For now, Sterling is trading as the weakest one for today after weaker than expected September CPI in UK. New Zealand Dollar is the second weakest, followed by Euro.
In other markets, European markets opened higher but turned south quickly. At the time of writing:
- FTSE is up 0.25%
- DAX is down -0.48%
- CAC is down -0.21%
- German 10 year yield is down -0.029 at 0.465, moved further away from 0.5 handle.
- Italian 10 year yield is up 0.041 at 3.501. That is, German-Italian spread is back above 300
- Gold is staying above 1225 in spite of Dollar’s rebound
In Asian, China Shanghai SSE initially extended recent down trend to as low as 2517.57, but staged a strong rebound in late trading.
- Nikkei closed up 1.29%
- Singapore Strait Times closed up 1.21%
- Hong Kong HSI closed up 0.07%
- China Shanghai SSE closed up 0.60% at 2561.61.
