Dollar in Wait-and-See Mode, Awaiting Federal Reserve's Policy Cue
| Action Insight Daily Report 12-13-23 |
Dollar in Wait-and-See Mode, Awaiting Federal Reserve's Policy Cue |
As the markets eagerly await FOMC rate decision and the release of new economic projections, Dollar is currently holding steady within a narrow range. The spotlight is particularly on the revised dot plot, as it is expected to provide crucial insights into the pace of monetary policy easing by Fed in the coming year. Investors are keenly looking for any signs of dovish policy shifts that could trigger risk-on sentiment, dragging down treasury yields and the greenback. In the European trading session, the focus shifts momentarily to UK's GDP data, which is crucial for understanding the trajectory of the UK economy. This data will offer insights into whether the UK economy is cooling sufficiently to bring inflation down, possibly negating the need for additional policy interventions by BoE. Concurrently, European majors are range bound against each other. Their next moves hinge on the outcomes of today's UK data and probably even more on the upcoming central bank meetings of SNB, BoE, and ECB tomorrow... |
USD/CAD Daily Outlook Daily Pivots: (S1) 1.3551; (P) 1.3585; (R1) 1.3625; More... Intraday bias in USD/CAD remains neutral at this point as range trading continues. On the upside, firm break of 1.3265 minor resistance will confirm short term bottoming at 1.3479. More importantly, whole correction from 1.3897 could have completed too. Intraday bias will be back on the upside for strong rally back to 1.3853/3897 resistance zone. However, break of 1.3544 minor support will turned bias back to the downside for 1.3479 and below, to resume the decline from 1.3897. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
|---|
| 23:50 | JPY | Tankan Large Manufacturing Index Q4 | 12 | 10 | 9 | | 23:50 | JPY | Tankan Large Manufacturing Outlook Q4 | 8 | 9 | 10 | | 23:50 | JPY | Tankan Non - Manufacturing Index Q4 | 30 | 27 | 27 | | 23:50 | JPY | Tankan Non - Manufacturing Outlook Q4 | 24 | 25 | 21 | | 23:50 | JPY | Tankan Large All Industry Capex Q4 | 13.50% | 12.40% | 13.60% | | 07:00 | GBP | GDP M/M Oct | -0.10% | 0.20% | | 07:00 | GBP | Industrial Production M/M Oct | -0.10% | 0.00% | | 07:00 | GBP | Industrial Production Y/Y Oct | 1.10% | 1.50% | | 07:00 | GBP | Manufacturing Production M/M Oct | 0.00% | 0.10% | | 07:00 | GBP | Manufacturing Production Y/Y Oct | 1.90% | 3.00% | | 07:00 | GBP | Goods Trade Balance (GBP) Oct | -14.1B | -14.3B | | 08:00 | CHF | SECO Economic Forecasts | | 10:00 | EUR | Eurozone Industrial Production M/M Oct | -0.30% | -1.10% | | 13:30 | USD | PPI M/M Nov | 0.10% | -0.50% | | 13:30 | USD | PPI Y/Y Nov | 1.00% | 1.30% | | 13:30 | USD | PPI Core M/M Nov | 0.20% | 0.00% | | 13:30 | USD | PPI Core Y/Y Nov | 2.20% | 2.40% | | 15:30 | USD | Crude Oil Inventories | -1.9M | -4.6M | | 19:00 | USD | Fed Interest Rate Decision | 5.50% | 5.50% | | 19:30 | USD | FOMC Press Conference |
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