Dollar Gains Momentum on Fed Outlook, Copper Decline Weighs on Aussie
| Action Insight Daily Report 11-14-24 |
Dollar Gains Momentum on Fed Outlook, Copper Decline Weighs on Aussie |
Dollar strengthened broadly overnight, underpinned by the solid rebound in US Treasury yields, while stock markets closed mixed. Stalling disinflation progress, as indicated by the latest CPI data, reinforced the likelihood that Fed will only adopt a gradual approach to lowering interest rates in the future. The aggressive 50bps rate cut back in September is clearly a one-off action that's not going to be repeated. Additionally, market participants are increasingly concerned about the inflationary impact of the incoming administration's fiscal and trade policies. Furthermore, structural changes in the US economy suggest that the terminal rate of the current easing cycle could be higher than previously anticipated. These factors may keep the Fed's easing hands tied in 2025, limiting the scope for significant policy easing.... |
USD/CAD Daily Outlook Daily Pivots: (S1) 1.3951; (P) 1.3977; (R1) 1.4025; More... USD/CAD surges through 1.3976 key resistance as larger up trend resumes. Intraday bias is back on the upside. Next near term target is 61.8% projection of 1.3418 to 1.3958 from 1.3841 at 1.4175. For now, outlook will stay bullish as long as 1.3841 support holds, in case of retreat. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 00:00 | AUD | Consumer Inflation Expectations Nov | 3.80% | 4.00% | | 00:01 | GBP | RICS Housing Price Balance Oct | 16% | 12% | 11% | | 00:30 | AUD | Employment Change Oct | 15.9K | 25.0K | 64.1K | 61.3K | | 00:30 | AUD | Unemployment Rate Oct | 4.10% | 4.10% | 4.10% | | 10:00 | EUR | Eurozone GDP Y/Y Q3 P | 0.90% | 0.90% | | 10:00 | EUR | Eurozone GDP Q/Q Q3 P | 0.40% | 0.40% | | 10:00 | EUR | Eurozone Industrial Production M/M Sep | -1.20% | 1.80% | | 12:30 | EUR | ECB Meeting Accounts | | 13:30 | USD | PPI M/M Oct | 0.20% | 0.00% | | 13:30 | USD | PPI Y/Y Oct | 2.30% | 1.80% | | 13:30 | USD | PPI Core M/M Oct | 0.30% | 0.20% | | 13:30 | USD | PPI Core Y/Y Oct | 3.00% | 2.80% | | 13:30 | USD | Initial Jobless Claims (Nov 8) | 224K | 221K | | 15:30 | USD | Natural Gas Storage | 34B | 69B | | 16:00 | USD | Crude Oil Inventories | 0.4M | 2.1M |
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