 The forex markets are generally trading in tight range as the week starts. Yen, Dollar and Sterling are generally firmer. Australian Dollar and New Zealand Dollar are the weaker ones, together with Euro. But movements in the markets are very limited. Overall, the greenback stays relatively soft as markets started to pare back bets on Fed's hike path. Sterling stabilized as there was, up to Sunday, not enough requests to trigger a challenge on UK PM May yet. But it remains vulnerable of more political shocks from the UK. And Euro is rather cautiously watching the drama of Italy-EU budget showdown. Technically, while the greenback has been weak since last week, there is no clear sign of reversal yet, except versus Yen and Aussie. EUR/USD is held below 1.1499 resistance, USD/CHF above 0.9952 support. USD/CAD is also holding well above 1.3056 support. USD/JPY's break of 112.94 last week argues that recent consolidation from 114.54 is extending with another falling leg towards 111.37. But there is no medium term reversal yet. The bigger development was AUD/USD's break of 0.7314 structural resistance. Sustained trading above there will indicate medium term reversal. In other markets, Nikkei closed up 0.65% at 21821.16. Hong Kong HSI and China Shanghai SSE are up 0.32% and 0.60% respectively. But Singapore Strait Times is down -0.66%. Japan 10 year JGB yield id down -0.013 at 0.094, back under 0.10%! Gold is hovering in tight range below 1220. WTI crude oil is consolidation at around 57.3. |
