Light Week Ahead with Dollar Rally Awaiting PCE Inflation Insights
| Action Insight Daily Report 3-25-24 |
Light Week Ahead with Dollar Rally Awaiting PCE Inflation Insights |
The forex markets display a calm demeanor in the Asian session, with most major pairs and crosses gyrating in very tight ranges. Australian Dollar finds modest support from the state orchestrated rebound in Chinese Yuan. However, this lift hasn't translated into clear momentum for an extended rally in Aussie. Meanwhile, Yen continues to pare back its recent losses. The release of BoJ's minutes from its January meeting stirred little reaction among traders, as the market's focus is keenly set on the upcoming summary of opinions from last week's pivot meeting instead, expected to be released on Thursday. Dollar's recent rally is on pause, awaiting US PCE inflation data as a potential volatility trigger. Surprises in this data could lead Fed policymakers to recalibrate their projections on the timing and number of rate cuts this year. Atlanta Fed President Raphael Bostic is an example of FOMC member that shifted stance. He revised his expectations to just one rate cut for the year, likely occurring later than initially anticipated. |
USD/CHF Daily Outlook Daily Pivots: (S1) 0.8953; (P) 0.8987; (R1) 0.9009; More.... Intraday bias in USD/CHF is turned neutral with 4H MACD crossed below signal line. Some consolidations would be seen below 0.9019 temporary top first. But downside of retreat should be contained above 0.8838 support to bring rebound. Break of 0.9019 will resume larger rally from 0.8332. Next target is 100% projection projection of 0.8550 to 0.8884 from 0.8728 at 0.9062. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 23:50 | JPY | BoJ Minutes | | 14:00 | USD | New Home Sales Feb | 675K | 661K |
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