What a wild day!Yen soars sharply higher across the board and hit 13 year high against dollar. Canadian dollar fell to a four year low against the greenback. Pound had the biggest drop in at least 37 years and hit record low against euro and a six year low against dollar too. Nikkei dropped 9.6% to lowest level since 2004. European are down from 5% to 7%. Though, US stock open is not as bad as anticipated even though futures were limit down earlier today. Markets thus turn into volatile choppy consolidation as the US session goes.
Technically speaking, it's obvious that dollar and yen are still strong in general. However, note that the Swiss Franc is possibly catching on the strength on safe haven flow. Other than yen, Swissy is indeed the only major currency that's higher against the greenback. GBP/CHF fell to as low as 1.7591, just inch above 1995 low of 1.7537 before recovering. Similar development is also seen in EUR/CHF which fell to as low as 1.4414 before recovery, just slightly above 2001 low of 1.4391. The strength of Swissy franc and development in swissy crosses worth paying attention to.
On the data front, existing home sales in US unexpected rose an impressive 5.5% in Sep to 5.1m annualized rate. Canadian CPI came in at 3.4% yoy with core CPI at 1.7% yoy in Sep, meeting consensus. UK preliminary GDP report was worse than expected, falling -0.5% qoq, first contraction since 1992 with yoy rate slowed sharply from 1.5% to 0.3%. Eurozone manufacturing and Services PMI were both worse than expected at 41.3 and 46.9 in Oct.
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