Dollar suffers deep selling in European session, in particular against European majors and Yen. This could be partly due to delayed reaction to Fed’s dovish shift overnight. Also there are rumors that US Commerce Department’s report regarding autos imports on US markets is delayed to mid January. German magazine WirtschaftsWoche said that the investigation report regarding imposition of 25% tariffs on auto was not approved during the consultation process between government departments.
Euro leads the way higher, with EUR/USD breaking 1.1443 and 1472 resistance levels. The development could have now set the stage for further rise back towards 1.1814 resistance. Sterling remains cautious ahead of BoE rate decision, despite stellar retail sales data. Even though Canadian, Australian and New Zealand Dollar recover against Dollar too, they remains the weakest ones for the week, with no sign of bottoming yet.
In other markets, at the time of writing:
- FTSE is down -0.30%
- DAX is down -0.90%
- CAC is down -1.33%
- German 10 year yield is down -0.0032 at 0.239
- Italian 10 year yield is down -0.022 at 2.749
- German-Italian spread stays at around 250. With budget approved by EU, spotlight will be off Italy, at least for a while.
Earlier in Asia:
- Nikkei dropped -2.84% to 20392.58, both losses were limited elsewhere
- Hong Kong HSI dropped -0.94%
- China Shanghai SS dropped -0.52%
- Singapore Strait Times dropped -0.26%
- Japan 10 year JGB yield dropped -0.0032 to 0.031
