Euro Firms Up ahead of ECB, Dollar Paring Gains
| Action Insight Daily Report 9-8-22 |
Euro Firms Up ahead of ECB, Dollar Paring Gains |
The markets are relatively steady in Asian session today, as focus turns to ECB rate hike. Dollar has been paring some gains overnight as risk aversion receded mildly. Both Euro and Swiss Franc are generally firming up. On the other hand, There is little sign of life for Yen, as it's staying pressured across the board. Sterling is also not too far away, while commodity currencies are mixed, with Canadian on the upper hand. Technically, in addition to Euro pairs, GBP/USD is one to watch today too, as it's now pressing pandemic low at 1.1409. Selloff is slowing for now. Indeed, considering bullish convergence condition in 4 hour MACD, break of 1.1608 minor resistance will suggest short term bottoming, after defending the key support. In that case, a sustainable rebound should follow as traders cover their short position and take profits. On the other hand, firm break of 1.1409 would trigger downside re-acceleration. In Asia, at the time of writing, Nikkei is up 2.34%. Hong Kong HSI is down -0.49%. China Shanghai SSE is up 0.15%. Singapore Strait Times is up 0.82%. Japan 10-year JGB yield is up 0.001 at 0.248. Overnight, DOW rose 1.40%. S&P 500 rose 1.83%. NASDAQ rose 2.14%. 10-year yield dropped -0.075 to 3.265. |
EUR/USD Daily Outlook Daily Pivots: (S1) 0.9918; (P) 0.9965; (R1) 1.0053; More... EUR/USD recovers notably, but stays below 1.0078 resistance. Intraday bias remains neutral and further decline is expected. Decisive break of 61.8% projection of 1.0773 to 0.9951 from 1.0368 at 0.9860 should prompt downside acceleration to 100% projection at 0.9546. On the upside, however, firm break of 1.0078 will indicate short term bottoming, and turn bias back to the upside for 1.0368 resistance instead. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 23:01 | GBP | RICS Housing Price Balance Aug | 53% | 61% | 63% | 62% | | 23:50 | JPY | Bank Lending Y/Y Aug | 1.90% | 1.90% | 1.80% | 1.70% | | 23:50 | JPY | GDP Q/Q Q2 F | 0.90% | 0.70% | 0.50% | | 23:50 | JPY | GDP Deflator Y/Y Q2 F | -0.30% | -0.40% | -0.40% | | 23:50 | JPY | Current Account (JPY) Jul | -0.63T | 0.02T | 0.84T | | 01:30 | AUD | Trade Balance (AUD) Jul | 8.73B | 14.50B | 17.67B | | 05:00 | JPY | Eco Watchers Survey: Current Aug | 45.5 | 44 | 43.8 | | 05:45 | CHF | Unemployment Rate Aug | 2.10% | 2.20% | 2.20% | | 06:45 | EUR | France Trade Balance (EUR) Jul | -12.2B | -13.1B | | 12:15 | EUR | ECB Main Refinancing Rate | 1.25% | 0.50% | | 12:30 | USD | Initial Jobless Claims (Sep 2) | 243K | 232K | | 12:45 | EUR | ECB Press Conference | | 14:30 | USD | Natural Gas Storage | 55B | 61B | | 15:00 | USD | Crude Oil Inventories | -2.0M | -3.3M |
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