No Fireworks After Fed Cut, Attention Turns to BoE
| Action Insight Daily Report 9-18-24 |
No Fireworks After Fed Cut, Attention Turns to BoE |
Market reactions were indecisive after Fed's much-anticipated rate cut overnight. The initial optimism that sparked a rally in US stocks quickly fizzled out, with major indexes closing in the red, while Treasury yields staged a recovery. The reaction was somewhat anticlimactic but understandable given the unusually high level of uncertainty surrounding this FOMC meeting. In hindsight, the market was prepared for unpredictability, making any actual surprise less impactful. Dollar rebounded following an initial selloff, but failed to carry momentum into Asian session. The greenback remains capped below resistance levels across major currency pairs, with the exception of Yen. As such, risk remains to the downside for Dollar in the near term... |
USD/JPY Daily Outlook Daily Pivots: (S1) 140.89; (P) 141.80; (R1) 143.16; More... USD/JPY's break of 143.03 resistance suggests short term bottoming at 139.57, on bullish convergence condition in 4H MACD. That also came just ahead of 139.26 fibonacci level. Intraday bias is back on the upside for stronger rebound to 55 D EMA (now at 147.58), and possibly further to 38.2% retracement of 161.94 to 139.57 at 148.11. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 22:45 | NZD | GDP Q/Q Q2 | -0.20% | -0.40% | 0.20% | 0.10% | | 01:30 | AUD | Employment Change Aug | 47.5K | 25.3K | 58.2K | 48.9K | | 01:30 | AUD | Unemployment Rate Aug | 4.20% | 4.20% | 4.20% | | 06:00 | CHF | Trade Balance (CHF) Aug | 5.05B | 4.89B | | 07:00 | CHF | SECO Economic Forecasts | | 08:00 | EUR | Eurozone Current Account (EUR) Jul | 40.3B | 50.5B | | 11:00 | GBP | BoE Interest Rate Decision | 5.00% | 5.00% | | 11:00 | GBP | MPC Official Bank Rate Votes | 0--2--7 | 0--5--4 | | 12:30 | USD | Initial Jobless Claims (Sep 13) | 232K | 230K | | 12:30 | USD | Philadelphia Fed Manufacturing Survey Sep | 2.4 | -7 | | 12:30 | USD | Current Account (USD) Q2 | -260B | -238B | | 14:00 | USD | Existing Home Sales Aug | 3.85M | 3.95M | | 14:30 | USD | Natural Gas Storage | 53B | 40B |
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