Euro Tumbles Amid Political Uncertainty, Market Eyes FOMC Dot Plot and US CPI This Week
| Action Insight Daily Report 6-10-24 |
Euro Tumbles Amid Political Uncertainty, Market Eyes FOMC Dot Plot and US CPI This Week |
In holiday-thinned Asian trading today, Euro's sharp decline was the focal point. Investors' reaction to European Parliament election results was overwhelmingly negative. The far-right's significant gains have sparked concerns, driving the common currency through key support level against both Sterling, and a near term support again Dollar. This technical development suggests further downside risks for Euro, which may persist at least until the political uncertainties within the EU are resolved. Dollar, on the other hand, managed to hold most of the gains achieved from last week's robust job data, although it has shown some struggle to extend its rally against commodity currencies today. The market's attention is now shifting towards the upcoming FOMC rate decision and the closely watched dot plot. However, the forthcoming May CPI data could be an even more significant market mover. Any indication that disinflation is stalling again could constrain Fed's ability and desire to ease monetary policy this year... |
EUR/USD Daily Outlook Daily Pivots: (S1) 1.0768; (P) 1.0835; (R1) 1.0870; More.... EUR/USD's steep decline today and strong break of 55 D EMA (now at 1.0810) indicates short term topping at 1.0915. more importantly, rebound from 1.0601 might have completed already, and EUR/USD is now is another falling leg of the corrective pattern from 1.1274. Intraday bias is back on the downside for 1.0601 support next. For now, risk will be mildly on the downside as long as 1.0915 resistance holds, in case of recovery. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 23:50 | JPY | Bank Lending Y/Y May | 3.00% | 3.10% | 3.10% | | 23:50 | JPY | GDP Q/Q Q1 F | -0.50% | -0.50% | -0.50% | | 23:50 | JPY | GDP Deflator Y/Y Q1 F | 3.40% | 3.70% | 3.60% | | 23:50 | JPY | Current Account (JPY) Apr | 2.52T | 2.06T | 2.01T | | 05:00 | JPY | Eco Watchers Survey: Current May | 45.7 | 48.9 | 47.4 | | 08:00 | EUR | Itay Industrial Output M/M Apr | 0.30% | -0.50% | | 08:30 | EUR | Eurozone Sentix Investor Confidence Jun | -1.9 | -3.6 |
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