Global Themes

EUR: Euro was rangebound overnight as US CPI was slightly below forecasts and J.Powell warned about effects of trade war did not have much impact on sentiment. Looking ahead, ECB’s Luis De Guindos will speak tonight in Brussels.

JPY: USDJPY continued to march higher after news said US and China are ready to talk again on trade. Technically, if USD continues to charge higher, the pair is setting up for a test at 114.00/25 region.

GBP: Sterling eased off slightly overnight on continued Brexit anxiety, the short term support is 1.3174, a level last reached on July 4 and topside resistance at 1.3301.

CAD: USDCAD is consolidating after commodity prices stabilised and market is re-assessing when BoC will hike again.

AUD: Aussie dollar rebounding above 74 cents as equities and commodities stabilised in the midst of trade war between US and China. Market is mindful if tensions escalates, AUD will be under attack again.

CNH: Spot dropped over 500 pips overnight as market is taking profit on recent long USDCNH positions. Forward points continued to be heavy as market is reducing rate hike expectations in China.

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