Euro experienced a bounce amidst whispers that ECB forthcoming inflation projections might support an imminent rate hike on Thursday. Nevertheless, this uptick was moderate, as the revelations originated from an anonymous source. Simultaneously, investors worldwide are gearing up for pivotal US CPI data and UK GDP figures set to drop later today, both of which have the potential to create ripples in the market. According to a Reuters report, insider information suggests that the quarterly economic projections to be handed in to ECB Governing Council today could reveal an inflation rate well surpassing 3% in 2024. This prediction defies anticipations of a marginal downward revision. Notably, the speculated 2024 figure overshadows the bank's 2% target, showing a leap from the 3% projection made in June. However, uncertainty remains as the source mentioned that this week's rate decision hangs in the balance, with formal proposals for the meeting yet to be tabled. Diving into other currency movements, Australian Dollar took a hit, emerging as the day's poorest performer. Yen trails, with any uplift from BoJ Governor Kazuo Ueda's influence dissipated swiftly. On the other side, Dollar is holding its ground as the day's top performer, but that's part of sideway trading inside familiar ranges against other major currencies. Sterling is claiming the second spot, followed closely by Swiss Franc. On a technical note, EUR/CHF is making some progress with the break of a near term falling trend line resistance. But risks will stay on the downside as long as 0.9601 resistance holds. That is, larger down trend from 1.0095 (Jan high) is still in favor to resume through 0.9513. However, decisive break of 0.9601 will be the first signal of a more sustainable near term rally, which could push EUR/CHF through 0.9646 resistance. The burning question remains: Will Euro enthusiasts make a premature move ahead of the crucial ECB rate decision? In Asia, at the time of writing, Nikkei is down -0.39%. Hong Kong HSI is down -0.21%. China Shanghai SSE is down -0.87%. Singapore Strait Times is down -0.06%. Japan 10-year JGB yield is down -0.0021 at 0.708. Overnight, DOW dropped -0.05%. S&P 500 dropped -0.57%. NASDAQ dropped -1.04%. 10-year yield dropped -0.024 to 4.264. |
