Subdued Trading Continues, Euro Falters as Markets Await US PCE Inflation
Action Insight Daily Report 1-26-24 |
Subdued Trading Continues, Euro Falters as Markets Await US PCE Inflation |
The subdued trading in the forex markets observed through the week continued in today's Asian session. Despite numerous central bank decisions and key economic data releases, most major currency pairs and crosses are staying within last week's range. Euro, as the worst performer. so far is a notable exception. This lackluster performance seems tied to relatively larger decline in Germany's benchmark yield, which reflects concerns over the region's economic prospects. Yet, selling momentum in the common currency is limited, except versus Sterling. Meanwhile, Yen, Swiss Franc, and Dollar are leading as the strongest currencies for the week. This may suggest a shift toward risk-averse behavior among investors. However, this interpretation isn't fully supported by global stock market activity; there's a noticeable absence of significant selloffs. Even in China, where stocks have been underperforming globally this year, there has been a rebound following PBoC's decision to cut the reserve requirement ratio to injects liquidity into the market. Commodity currencies are showing slight weakness, though they are performing marginally better than Euro... |
EUR/GBP Daily Outlook Daily Pivots: (S1) 0.8516; (P) 0.8540; (R1) 0.8559; More... Intraday bias in EUR/GBP remains on the downside as fall from 0.8713 is in progress. Current decline is seen as part of the larger down trend. Next target is 0.8491 low, and then 0.8464 projection level. On the upside, above 0.8563 minor resistance will turn intraday bias neutral and bring consolidations again. | |
GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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23:30 | JPY | Tokyo CPI Y/Y Jan | 1.60% | 2.40% | 23:30 | JPY | Tokyo CPI ex Fresh Food Y/Y Jan | 1.60% | 1.90% | 2.10% | 23:30 | JPY | Tokyo CPI ex Food & Energy Y/Y Jan | 3.10% | 3.50% | 23:50 | JPY | Corporate Service Price Index Y/Y Dec | 2.40% | 2.40% | 2.30% | 2.40% | 23:50 | JPY | BoJ minutes | 00:01 | GBP | GfK Consumer Confidence Jan | -19 | -21 | -22 | 07:00 | EUR | Germany Gfk Consumer Confidence Feb | -24.3 | -25.1 | 09:00 | EUR | Eurozone M3 Money Supply Y/Y Dec | -0.70% | -0.90% | 13:30 | USD | Personal Income M/M Dec | 0.30% | 0.40% | 13:30 | USD | Personal Spending Dec | 0.40% | 0.20% | 13:30 | USD | PCE Price Index M/M Dec | 0.20% | -0.10% | 13:30 | USD | PCE Price Index Y/Y Dec | 2.60% | 2.60% | 13:30 | USD | Core PCE Price Index M/M Dec | 0.20% | 0.10% | 13:30 | USD | Core PCE Price Index Y/Y Dec | 3.00% | 3.20% | 15:00 | USD | Pending Home Sales M/M Dec | 1.60% | 0.00% |
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