Dollar Recovery Continues, But Bulls Struggle to Secure Full Control
| Action Insight Daily Report 5-8-24 |
Dollar Recovery Continues, But Bulls Struggle to Secure Full Control |
Dollar's rebound gained some momentum in Asian session today on resurgence of risk aversion. Selloff in Japan was most notable where key industry leaders like Fast Retailing, Nintendo, and Toyota saw substantial declines. The sentiment was further dampened after remarks from BoJ Governor Kazuo Ueda, who reiterated that Yen's extended weakness might necessitate monetary policy responses. Throughout the current week, Dollar is currently standing out as the best performer at this point. However, its ascent has been somewhat restrained, and capped below the previous week's highs against other currencies. The greenback will have to demonstrate more strength to prove that it's near term pullback started last week is over. Euro trails as the second strongest currency, followed by New Zealand dollar. Conversely, Yen is the weakest performer, despite managing to retain a substantial portion of its gains from the previous week that were rumored to be bolstered by Japan's strategic market interventions. Australian and Canadian dollars follow as the next weakest. British Pound and Swiss Franc are positioned in the middle. The Pound, in particular, stands at a critical juncture as market participants keenly await BoE's forthcoming rate decisions and the release of new economic forecasts tomorrow... |
GBP/USD Daily Outlook Daily Pivots: (S1) 1.2535; (P) 1.2565; (R1) 1.2591; More... Intraday bias in GBP/USD remains neutral for the moment and some more consolidations could be seen below 1.2633. Further rally is in favor with 1.2471 support intact. On the upside, above 1.2633 will resume the rebound from 1.2298 to 1.2708 resistance next. However, firm break of firm break of 1.2471 will indicate that this rebound has completed, and revive near term bearishness. Retest of 1.2298 should then be seen in this case. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 06:00 | EUR | Germany Industrial Production M/M Mar | -0.4% | -1.10% | 2.10% | | 08:00 | EUR | Italy Retail Sales M/M Mar | 0.20% | 0.10% | | 14:00 | USD | Wholesale Inventories Mar F | -0.40% | -0.40% | | 14:30 | USD | Crude Oil Inventories | 7.3M |
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