Euro and Sterling Shrug Poor PMIs, Overall Sentiment Mixed
| Action Insight Daily Report 10-25-22 |
Quiet Markets Await Germany Ifo and US Consumer Confidence |
The Asian markets are generally quiet today, with the expectation in China. The Shanghai SSE reversed earlier losses and surged before the break, with talks of buying by the "national team". But Yuan's decline continued and hit another record low. In the forex markets, most major pairs and crosses are bounded inside yesterday's range. Today's economic calendar is relatively light, but German Ifo business climate and US consumer confidence could trigger some volatility. Nevertheless, traders might wait for rate decisions of BoC and ECB later in the week before making a committed move. Technically, EUR/CHF is attempting to build up momentum to resume the rally from 0.9407. Sustained trading above 61.8% projection of 0.9407 to 0.9798 from 0.9641 at 0.9883 will solidify the case of medium term bottoming and target 100% projection at 1.0032. The interest there is whether EUR/CHF's rise, if happens, would result in EUR/USD breaking through 0.9998, or USD/CHF breaking through 1.0146, or both. In Asia, at the time of writing, Nikkei is up 1.23%. Hong Kong HSI is up 0.87%. China Shanghai SSE is up 0.74%. Singapore Strait Times is up 0.61%. Japan 10-year JGB yield is up 0.0002 at 0.257. Overnight, DOW rose 1.34%. S&P 500 rose 1.19%. NASDAQ rose 0.86%. 10-year yield rose 0.021 to 4.234. |
USD/CAD Daily Outlook Daily Pivots: (S1) 1.3617; (P) 1.3696; (R1) 1.3785; More... USD/CAD is still engaging in the consolidation pattern from 1.3976 and intraday bias remains neutral. Deeper retreat might be seen but downside should be contained by 1.3501 support. On the upside, firm break of 1.3976 will target 200% projection of 1.2005 to 1.2947 from 1.2401 at 1.4285. However, firm break of 1.3501 will bring deeper correction to 55 day EMA (now at 1.3426) and possibly below. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 08:00 | EUR | Germany IFO Business Climate Oct | 84 | 84.3 | | 08:00 | EUR | Germany IFO Current Assessment Oct | 92.5 | 94.5 | | 08:00 | EUR | Germany IFO Expectations Oct | 74.9 | 75.2 | | 13:00 | USD | S&P/Case-Shiller Home Price Indices Y/Y Aug | 15.40% | 16.10% | | 13:00 | USD | Housing Price Index M/M Aug | -0.30% | -0.60% | | 14:00 | USD | Consumer Confidence Oct | 105.6 | 108 |
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