Dollar Defies Increasing Rate Cut Expectations, Gains Ground on Risk-Off Sentiment
Action Insight Daily Report 1-16-24 |
Dollar Defies Increasing Rate Cut Expectations, Gains Ground on Risk-Off Sentiment |
Dollar rises broadly on risk-off sentiment today, as as Hong Kong stocks led the region lower. The greenback's strength comes despite growing calls for Fed to initiate policy loosening earlier. Notably, Goldman Sachs has joined this chorus, predicting an initial rate cut as early as March and a total of five cuts throughout the year. Concurrently, US 10-year yield has also breached the 4% mark, riding on the overall market sentiment. The greenback's surge was particularly pronounced against risk-sensitive currencies. Australian and New Zealand Dollar led the decline, with Aussie facing additional pressure from disappointing consumer sentiment data. Canadian Dollar, though showed relative resilience as markets eagerly await Canada's CPI data. On the other hand, Japanese Yen emerged as the second strongest after the Dollar, supported partly by Japan's PPI reading, which, despite falling to its lowest level in nearly two years, still exceeded market expectations... |
AUD/USD Daily Report Daily Pivots: (S1) 0.6638; (P) 0.6672; (R1) 0.6693; More... AUD/USD's decline from 0.6870 resumed by breaking through 0.6639 support. Intraday bias is back on the downside. Deeper fall should be seen to 61.8% retracement of 0.6269 to 0.6870 at 0.6497 next. On the upside, break of 0.6728 is needed to indicate completion of the decline. Otherwise, further fall would remain in favor in case of recovery. | |
GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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21:00 | NZD | NZIER Business Confidence Q4 | -2 | -52 | 23:30 | AUD | Westpac Consumer Confidence Jan | -1.30% | 2.70% | 23:50 | JPY | PPI Y/Y Dec | 0.00% | -0.30% | 0.30% | 07:00 | GBP | Claimant Count Change Dec | 18.1K | 16K | 07:00 | GBP | ILO Unemployment Rate (3M) Nov | 4.30% | 4.20% | 07:00 | GBP | Average Earnings Excluding Bonus 3M/Y Nov | 6.60% | 7.30% | 07:00 | GBP | Average Earnings Including Bonus 3M/Y Nov | 6.80% | 7.20% | 07:00 | EUR | Germany CPI M/M Dec F | 0.10% | 0.10% | 07:00 | EUR | Germany CPI Y/Y Dec F | 3.70% | 3.70% | 10:00 | EUR | Germany ZEW Economic Sentiment Jan | 12.7 | 12.8 | 10:00 | EUR | Germany ZEW Current Situation Jan | -77 | -77.1 | 10:00 | EUR | Eurozone ZEW Economic Sentiment Jan | 21.9 | 23 | 13:15 | CAD | Housing Starts Dec | 244K | 213K | 13:30 | CAD | CPI M/M Dec | -0.30% | 0.10% | 13:30 | CAD | CPI Y/Y Dec | 3.30% | 3.10% | 13:30 | CAD | CPI Median Y/Y Dec | 3.40% | 3.40% | 13:30 | CAD | CPI Trimmed Y/Y Dec | 3.50% | 3.50% | 13:30 | CAD | CPI Common Y/Y Dec | 3.80% | 3.90% | 13:30 | USD | Empire State Manufacturing Index Jan | -5 | -14.5 |
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