Canadian Dollar is the strongest one today, with the help from rally resumption in oil price. WTI breaks 57 handle and is now at around 57.4. Swiss Franc is the second strongest for today, followed by Euro. New Zealand Dollar, Yen and Dollar remain the weakest ones. The greenback will look into FOMC minutes to be released soon.
Stock markets are trying to extend recent rally but without much follow through momentum. There is no news regarding US-China trade talks, except that USTR will testify in the House Ways and Means Committee on Feb 27. Sterling was initially pressured on news that three Conservative lawmakers quit the party. But it then regained strength as Spanish Foreign Minister said an updated Brexit deal is being hammered out.
In US markets, currently:
- DOW is up 0.15%.
- S&P 500 is up 0.14%.
- NASDAQ is up 0.25%.
- 30-year yield is up 0.015 at 3.006, back above 3.0 handle.
In Europe:
- FTSE rose 0.69%.
- DAX rose 0.82%.
- CAC rose 0.69%.
- German 10-year bund yield dropped -0.0045 to 0.102, but defended 0.1 handle.
WTI crude oil resumes recent rally to as high as 57.57 so far. Further rise is now expected. But still, rise from 42.05 is seen as a corrective move. Hence, strong resistance will likely be seen around 61.8% projection of 42.05 to 55.85 from 51.49 at 60.01 to limit upside. That is is actually close to 50% retracement of 77.06 to 42.05 at 59.55. 55 week EMA (now at 59.60) is also in proximity.
