Dollar Selloff Continues as Risk-On Sentiment Drives US Stocks to New Highs
| Action Insight Daily Report 5-16-24 |
Dollar Selloff Continues as Risk-On Sentiment Drives US Stocks to New Highs |
Dollar faced broad sell-offs overnight and continued to weaken in Asian session. Investors breathed a sigh of relief after US CPI data indicated that disinflation is progressing, which has reignited speculation about near-term rate cuts by Fed. Or at least, another rate hike is now highly unlikely, as repeated by Chair Jerome Powell. Fed fund futures now show nearly 74% chance of a rate cut in September. Additionally, the probability of two total cuts this year has risen to around 70%. This optimism propelled NASDAQ to lead major US stock indexes to new record closes, while 10-year Treasury yield plummeted, breaking below 4.4% mark. In the currency markets, New Zealand Dollar emerged as the strongest performer for now, further boosted by its rebound against Australian Dollar. Although Aussie also saw notable gains, its upside was capped by mixed employment data that revealed a rise in unemployment rate. British Pound is currently the second strongest currency, supported by robust wage growth data released yesterday. On the other hand, Canadian Dollar is the second weakest, following the greenback. Swiss Franc is also weak, ranking as the third worst performer. currency. Meanwhile, Euro and the Japanese Yen are positioned in the middle of the pack... |
EUR/USD Daily Outlook Daily Pivots: (S1) 1.0783; (P) 1.0804; (R1) 1.0842; More... EUR/USD's rally from 1.0601 continues today and intraday bias stays on the upside. Next target is 1.0980 resistance. Decisive break there will confirm that whole fall from 1.1138 has completed already. On the downside, below 1.0833 minor support will turn intraday bias neutral first. But further rally is expected as long as 1.0765 support holds, in case of retreat. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 23:50 | JPY | GDP Q/Q Q1 P | -0.50% | -0.40% | 0.10% | | 23:50 | JPY | GDP Deflator Y/Y Q1 P | 3.60% | 3.30% | 3.90% | | 01:30 | AUD | Employment Change Apr | 38.5K | 25.3K | -6.6K | | 01:30 | AUD | Unemployment Rate Apr | 4.10% | 3.90% | 3.80% | 3.90% | | 04:30 | JPY | Industrial Production M/M Mar F | 3.40% | 3.80% | | 09:00 | EUR | Italy Trade Balance (EUR) Mar | 4.77B | 6.03B | | 12:30 | USD | Initial Jobless Claims (May 10) | 219K | 231K | | 12:30 | USD | Building Permits Apr | 1.48M | 1.46M | | 12:30 | USD | Housing Starts Apr | 1.43M | 1.32M | | 12:30 | USD | Import Price Index Y/Y Apr | 0.20% | 0.40% | | 12:30 | USD | Philadelphia Fed Survey May | 7.7 | 15.5 | | 13:15 | USD | Industrial Production M/M Apr | 0.20% | 0.40% | | 13:15 | USD | Capacity Utilization Apr | 78.40% | 78.40% | | 14:30 | USD | Natural Gas Storage | 76B | 79B |
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