 Dollar is mildly softer in Asian session as traders turn cautious ahead of FOMC rate decision. But it should be noted that, except versus less, and to a lesser extent Swiss Franc, Dollar isn't that weak. EUR/USD, GBP/USD and AUD/USD are bounded in consolidation in familiar range. USD/CAD has indeed extended recent rally, thanks to free fall in oil prices. The wild card in the new FOMC economic projections. Dollar could have a breakout from ranges whether there are changes in the projections or not. Staying in the currency markets, Canadian Dollar is the weakest one for the week as WTI crude oil dived to as low as 46.07 on down trend resumption. Dollar is the second weakest for the week but is held above last week's against all. Australian Dollar is the third weakest, also staying in prior week's range. On other hand, Yen is notably strong as it's now above last week's high against Euro, Swiss Franc and Canadian. In other markets, US treasury yields had another day of sharp decline overnight. 5-year yield closed down -0.037 at 2.656. 10-year yield dropped -0.032 to 2.825. 30-yer yield dropped -0.035 to 3.079. Yield curve is now inverted from 1-year (2.651) to 2-year (2.646) and 3-year (2.631). US stocks recovered mildly after Monday's free fall. DOW rose 0.35%, S&P 500 rose 0.01%, NASDAQ rose 0.45%. In Asia, Nikkei is currently down -0.55%, Hong Kong HSI up 0.16%, China Shanghai SSE down -0.25%, Singapore Strait Times up 0.47%. |
