Dollar Slumps as Euro Eyes August High, Hong Kong Markets Approach Crucial Resistance
| Action Insight Daily Report 9-25-24 |
Dollar Slumps as Euro Eyes August High, Hong Kong Markets Approach Crucial Resistance |
Dollar continued its broad-based weakness in Asian session, with selling pressure shifting towards European majors. EUR/USD is approaching its August high as the near-term rebound gathers momentum. This decline in the Dollar is partly attributed to weaker-than-expected US consumer confidence data released overnight, which has intensified market expectations of consecutive 50bps rate cuts by Fed in November. On the European front, speculation about another 25bps rate cut by ECB in October has been tempered by recent comments from policymakers. It appears that ECB officials are still viewing December as a more suitable time for further monetary adjustments, given that more comprehensive economic data will be available by then. So far this week, Dollar is the worst-performing major currency, followed by Euro and Japanese Yen. Kiwi leads gains, buoyed by positive risk sentiment, followed by Aussie and Loonie. Sterling and Swiss Franc are trading in the middle range, with attention on Swiss Franc ahead of tomorrow's SNB rate decision.... |
EUR/USD Daily Outlook Daily Pivots: (S1) 1.1128; (P) 1.1155; (R1) 1.1206; More.... Immediate focus is now on 1.1200 resistance as EUR/USD's rebound from 1.1001 extends today. Break there will resume the rally from 1.0665 to retest 1.1274 high. Firm break there will resume larger up trend. Next near term target will be 100% projection of 1.0776 to 1.1200 from 1.1001 at 1.1425. Rejection by 1.1200 will bring another retreat. But outlook will continue to stay bullish as long as 1.1001 support holds. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 23:50 | JPY | Corporate Service Price Index Y/Y Aug | 2.70% | 2.70% | 2.80% | 2.70% | | 01:30 | AUD | Monthly CPI Y/Y Aug | 2.70% | 2.70% | 3.50% | | 08:00 | CHF | UBS Economic Expectations Sep | -3.4 | | 14:00 | USD | New Home Sales Aug | 693K | 739K | | 14:30 | USD | Crude Oil Inventories | -1.3M | -1.6M |
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