Dollar Strong ahead of NFP, Time for EUR/USD Breakout?
| Action Insight Daily Report 9-2-22 |
Dollar Strong ahead of NFP, Time for EUR/USD Breakout? |
With risk-off sentiment and rising treasury yields, Dollar is extending recent rally as focus now turns to US non-farm payrolls report. 2-yaer year hit the highest level since 2007 overnight while 10-year yield also breaks above 3.2 handle. While Dollar is strong, Euro is also resilient, holding in range against the greenback and maintaining most gains against others. Yen is so far the worst performer for the week, followed by Sterling and Swiss Franc. Technically, while most attention is on Dollar pairs today, we'll keep an eye on EUR/CHF too. It lost much upside momentum after hitting 0.9833. Extended decline from there, and break of 0.9696 support, will argue that the rebound from 0.9550 has completed. That could also be a signal of the end of rally in Euro in crosses, and the readiness for downside breakout in EUR/USD. In Asia, at the time of writing, Nikkei is down -0.06%. Hong Kong HSI is down -0.91%. China Shanghai SSE is up 0.01%. Singapore Strait Times is down -0.62%. Japan 10-year JGB yield is down -0.0002 at 0.240. Overnight, DOW rose 0.46%. S&P 500 rose 0.30%. NASDAQ dropped -0.26%. 10-year yield rose 0.132 to 3.265. |
USD/JPY Daily Outlook Daily Pivots: (S1) 139.24; (P) 139.74; (R1) 140.70; More... USD/JPY's firm break of 139.37 resistance confirms up trend resumption. Intraday bias stays on the upside for 100% projection of 126.35 to 139.37 from 130.38 at 143.40 next. Sustained break there could bring upside acceleration of 147.68 long term resistance. On the downside, below 138.04 minor support will turn intraday bias neutral and bring consolidations first, before staging another rally. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 22:45 | NZD | Terms of Trade Index Q2 | -2.40% | 0.20% | 0.50% | 0.60% | | 06:00 | EUR | Germany Trade Balance (EUR) Jul | 4.6B | 6.4B | | 09:00 | EUR | Eurozone PPI M/M Jul | 2.50% | 1.10% | | 09:00 | EUR | Eurozone PPI Y/Y Jul | 35.80% | 35.80% | | 12:30 | CAD | Labor Productivity Q/Q Q2 | 0.10% | -0.50% | | 12:30 | USD | Nonfarm Payrolls Aug | 290K | 528K | | 12:30 | USD | Unemployment Rate Aug | 3.50% | 3.50% | | 12:30 | USD | Average Hourly Earnings M/M Aug | 0.30% | 0.50% | | 14:00 | USD | Factory Orders M/M Jul | 0.20% | 2.00% |
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