 Dollar index jumped overnight and breached 96.98 key resistance, with the help from rebound in stocks and treasury yields. But strength of the greenback mainly centered against Sterling, Swiss Franc and Yen. It's holding in range against Euro, Canadian and Australian for the moment. As for today, Sterling is recovering broadly, mainly because it's digesting this week's sharp losses. Australian Dollar and Yen are the weakest for now instead. DOW staged a strong 431.72 pts, or 1.77% rebound overnight. S&P 500 and NASDAQ also closed up 1.57% and 1.58% respectively. All three indices are staying in lower-low, lower-high pattern for the near term. But oversold condition could limit downside for a while. 10 year yield closed up 0.23 at 3.110. 30-year yield closed up 0.027 at 3.356. Both are held in near term consolidation. But 30-year yield displayed more resilience. In Asia, at the time of writing, Nikkei is up 2%, Singapore Strait Times up 0.66%, China Shanghai SSE is up 1.07%, Hong Kong HSI is up 0.91%. Japan 10 year JGB yield is up 0.0024 at 0.124. Markets sentiments seem to be back to normal. Technically, with Dollar's rebound, focus will now be on 1.1335 temporary low in EUR?USD and break will put focus on 1.1300 key support level. At the same time, GBP/USD might also challenge 1.2661 key support. USD/CHF could challenge 1.0067 key resistance. We'll see if Dollar could power through these key levels, or be rejected from there. |
