Yen Weakness Continues, Sterling Ready For More Upside
| Action Insight Daily Report 2-15-23 |
Yen Weakness Continues, Sterling Ready For More Upside |
Yen's weakness is currently a clearer development in the rather indecisive markets. Germany and UK benchmark yields are extending near term rally while US 10-year yield stands firm above 3.7%. On the other hand, 10-year JGB yield is still capped by BoJ imposed ceiling. Dollar is mixed for now after traders refused to commit over yesterday's CPI data. On other hand Sterling looks ready to ride on any upside surprise in today's consumer inflation data. A question is whether the Pound's rally, if happens, could take Euro and Swiss higher, or pressured them. Technically, GBP/CHF is making some progress in breaking 1.1206 minor resistance. Upside acceleration today would add to the case that whole corrective pattern from 1.1574 has completed. 1.1433 resistance should be the next target. Firm break there will set the stage to resume larger rally from 1.0813 through 1.1574 later in the month. Let's see how it goes. In Asia, Nikkei closed down -0.42%. Hong Kong HSI is down -1.51%. China Shanghai SSE is down -0.47%. Singapore Strait Times is down -1.06%. Japan 10-year JGB yield is down -0.007 at 0.503. Overnight, DOW dropped -0.46%. S&P 500 dropped -0.03%. NASDAQ rose 0.57%. 10-year yield rose 0.044 to 3.761. |
USD/JPY Daily Outlook Daily Pivots: (S1) 131.97; (P) 132.65; (R1) 133.77; More... Intraday bias in USD/JPY stays on the upside at this point. Rebound from 127.20 short term bottom should extend to 38.2% retracement of 151.93 to 127.20 at 136.64, even as a correction to the decline from 151.39. On the downside, break of 131.49 minor support will turn intraday bias neutral again first. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 04:30 | JPY | Tertiary Industry Index M/M Dec | -0.40% | 0.00% | -0.20% | 0.10% | | 07:00 | GBP | CPI M/M Jan | -0.40% | 0.40% | | 07:00 | GBP | CPI Y/Y Jan | 10.30% | 10.50% | | 07:00 | GBP | Core CPI Y/Y Jan | 6.20% | 6.30% | | 07:00 | GBP | RPI M/M Jan | 0.10% | 0.60% | | 07:00 | GBP | RPI Y/Y Jan | 13.20% | 13.40% | | 07:00 | GBP | PPI Input M/M Jan | 0.80% | -1.10% | | 07:00 | GBP | PPI Input Y/Y Jan | 15.40% | 16.50% | | 07:00 | GBP | PPI Output M/M Jan | -0.20% | -0.80% | | 07:00 | GBP | PPI Output Y/Y Jan | 14.40% | 14.70% | | 07:00 | GBP | PPI Core Output M/M Jan | 0.70% | 0.10% | | 07:00 | GBP | PPI Core Output Y/Y Jan | 11.90% | 12.40% | | 10:00 | EUR | Eurozone Trade Balance (EUR) Dec | -16.0B | -15.2B | | 10:00 | EUR | Eurozone Industrial Production M/M Dec | -0.80% | 1.00% | | 13:15 | CAD | Housing Starts Jan | 252K | 249K | | 13:30 | CAD | Manufacturing Sales M/M Dec | 0% | | 13:30 | CAD | Wholesale Sales M/M Dec | 0.50% | | 13:30 | USD | Empire State Manufacturing Index Feb | -15.6 | -32.9 | | 13:30 | USD | Retail Sales M/M Jan | 1.70% | -1.10% | | 13:30 | USD | Retail Sales ex Autos M/M Jan | 0.90% | -1.10% | | 14:15 | USD | Industrial Production M/M Jan | 0.40% | -0.70% | | 14:15 | USD | Capacity Utilization Jan | 79.00% | 78.80% | | 15:00 | USD | NAHB Housing Market Index Feb | 37 | 35 | | 15:00 | USD | Business Inventories Dec | 0.40% | 0.40% | | 15:30 | USD | Crude Oil Inventories | 2.4M |
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