Dollar Recovers as Risk Round Lost Steam, Euro Failing Parity
| Action Insight Mid-Day Report 10-5-22 |
Dollar Recovers as Risk Round Lost Steam, Euro Failing Parity |
This week's rebound in global stock markets is losing momentum, as major European indexes and US futures are trading lower. Dollar recovers and lead Yen and Swiss Franc higher. Meanwhile, the rebound in Sterling also appears to have exhausted. Aussie and Loonie are following the Pound and next weakest while Kiwi is supported by RBNZ rate hike earlier today. Also, it looks like Euro has failed parity against Dollar for now. Technically, it's way to early to call for a trend reversal in stocks. For example, while DOW's rebound was impressive, it's kept well below 55 day EMA. Indeed, psychologically, if DOW couldn't firmly grip 30k handle for the rest of the week, the stage would be set for down trend resumption through 28715.85 low later in the month. Let's see. In Europe, at the time of writing, FTSE is down -0.74%. DAX is down -0.95%. CAC is down -0.65%. Germany 10-year yield rose 0.081 to 1.953. Earlier in Asia, Nikkei rose 0.48%. Hong Kong HSI rose 5.90%. Singapore Strait Times rose 0.46%. Japan 10-year JGB yield rose 0.0183 to 0.250. |
EUR/USD Mid-Day Outlook Daily Pivots: (S1) 0.9862; (P) 0.9930; (R1) 1.0055; More... Intraday bias in EUR/USD is turned neutral first with current retreat. On the downside, break of 0.9734 minor support will suggest rejection by 55 day EMA (now at 1.0022), and medium term falling channel. Bias will be turned back to the downside for retesting 0.9534 low and then resume down trend. Nevertheless, considering bullish convergence condition in daily MACD, sustained break of 55 day EMA (now at 1.0022) will raise the chance of medium term bottoming at 0.9534. Further rally should then be seen to 38.2% retracement of 1.1494 to 0.9534 at 1.0283. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 01:00 | NZD | RBNZ Interest Rate Decision | 3.50% | 3.50% | 3.00% | | 06:00 | EUR | Germany Trade Balance (EUR) Aug | 1.2B | 4.0B | 5.4B | 3.4B | | 06:45 | EUR | France Industrial Output M/M Aug | 2.40% | -0.30% | -1.60% | | 07:45 | Italy | Italy Services PMI Sep | 48.8 | 49.2 | 50.5 | | 07:50 | EUR | France Services PMI Sep F | 52.9 | 53 | 53 | | 07:55 | EUR | Germany Services PMI Sep F | 45 | 45.4 | 45.4 | | 08:00 | EUR | Eurozone Services PMI Sep F | 48.8 | 50.2 | 48.9 | | 08:30 | GBP | Services PMI Sep F | 50 | 49.2 | 49.2 | | 12:15 | USD | ADP Employment Change Sep | 208K | 200K | 132K | 185K | | 12:30 | USD | Trade Balance (USD) Aug | -67.4B | -67.8B | -70.6B | | 12:30 | CAD | Building Permits M/M Aug | 11.90% | -0.80% | -6.60% | -7.30% | | 12:30 | CAD | International Merchandise Trade (CAD) Aug | 1.5B | 3.5B | 4.1B | 2.4B | | 13:45 | USD | Services PMI Sep F | 49.2 | 49.2 | | 14:00 | USD | ISM Services PMI Sep | 56 | 56.9 | | 14:30 | USD | Crude Oil Inventories | 1.7M | -0.2M |
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