Dollar Sees Mild Retreat Ahead of ISM Services, Gold Extends Record Run
Action Insight Daily Report 4-3-24 |
Dollar Sees Mild Retreat Ahead of ISM Services, Gold Extends Record Run |
Dollar retreated mildly following comments from two FOMC members, including a known hawkish figure, reiterating expectations for three interest rate cuts within the year. Despite this, the retreat remains subdued as there is no guarantee yet for a June cut. Fed's approach continues to be heavily influenced by incoming data. The greenback's next move will hinge on today's ISM Services data, as well as Friday's Non-Farm Payrolls. Euro is trading as the day's stronger currency, with anticipation building ahead of Eurozone CPI flash release. Market expectations suggest a slight moderation in both headline and core CPI to 2.5% and 3.0%, respectively, for March. Unless faced with significant downside surprises,ECB is poised to begin its interest rate cuts in June rather than April. In terms of weekly performance, Australian Dollar leads as the strongest currency, followed by Dollar and New Zealand Dollar. Swiss Franc finds itself as the weakest, with Sterling and Canadian Dollar also underperforming. Euro and Yen are situated mid-pack... |
EUR/USD Daily Outlook Daily Pivots: (S1) 1.0736; (P) 1.0758; (R1) 1.0790; More... Intraday bias in EUR/USD is turned neutral with current recovery and some consolidation would be seen first. But risk will stay on the downside as long as 1.0834 support turned resistance holds, in case of recovery. Below 1.0723 will bring retest of 1.0694 support first. Decisive break there will resume the whole decline from 1.1138 and target 100% projection of 1.1138 to 1.0694 from 1.0980 at 1.0536. | |
GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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00:30 | JPY | Services PMI Mar F | 54.1 | 54.9 | 54.9 | 01:45 | CNY | Caixin Services PMI Mar | 52.7 | 52.7 | 52.5 | 08:00 | EUR | Italy Unemployment Feb | 7.20% | 7.20% | 09:00 | EUR | Eurozone CPI Y/Y Mar P | 2.50% | 2.60% | 09:00 | EUR | Eurozone CPI Core Y/Y Mar P | 3.00% | 3.10% | 12:15 | USD | ADP Employment Change Mar | 150K | 140K | 13:45 | USD | Services PMI Mar F | 51.7 | 51.7 | 14:00 | USD | ISM Services PMI Mar | 52.8 | 52.6 | 14:30 | USD | Crude Oil Inventories | -0.3M | 3.2M |
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