Dollar Recovery Picks Up Momentum, Sterling Lower after Budget
| Action Insight Mid-Day Report 11-17-22 |
Dollar Recovery Picks Up Momentum, Sterling Lower after Budget |
Dollar's recovery is starting pick up momentum in early US session, as risk off sentiment deepens. The development is reflected in broad based selloff in Australian and New Zealand Dollar. Sterling is also weak as mild reaction to UK's new budget statement. Canadian Dollar and Euro are the firmer ones next to Dollar, while Yen and Swiss Franc are mixed. Technically, as Sterling dips, focus is back on 0.8827 resistance in EUR/GBP. Break there will resume larger rebound from 0.8570. Further break of 0.8869 resistance will pave the way to retest 0.9267 high. That, if happens, could add further pressure to the Pound elsewhere. In Europe, at the time of writing, FTSE is down-0.71%. DAX is down -0.54%. CAC is down -1.15%. Germany 10-year yield is up 0.033 at 2.031. Earlier in Asia, Nikkei dropped -0.35%. Hong Kong HSI dropped -1.15%. China Shanghai SSE dropped -0.15%. Singapore Strait Times rose 0.61%. Japan 10-year JGB yield rose 0.0034 to 0.249. |
GBP/USD Mid-Day Outlook Daily Pivots: (S1) 1.1851; (P) 1.1896; (R1) 1.1961; More... GBP/USD's retreat from 1.2028 extends lower today but stays above 1.1597 resistance turned support. Intraday bias remains neutral first. Further rise is expected, and break of 1.2028 will target 100% projection of 1.0351 to 1.1494 from 1.1145 at 1.2288. However, sustained break of 1.1597 will bring deeper fall to 1.1145 support instead. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
|---|
| 21:45 | NZD | PPI Input Q/Q Q3 | 0.80% | 2.60% | 3.10% | | 21:45 | NZD | PPI Output Q/Q Q3 | 1.60% | 2.10% | 2.40% | | 23:50 | JPY | Trade Balance (JPY) Oct | -2.30T | -2.23T | -2.01T | -2.04T | | 00:30 | AUD | Employment Change Oct | 32.2K | 15.0K | 0.9K | -3.8K | | 00:30 | AUD | Unemployment Rate Oct | 3.40% | 3.50% | 3.50% | | 07:00 | CHF | Trade Balance (CHF) Oct | 4.14B | 3.70B | 4.0B | 4.19B | | 09:00 | EUR | Italy Trade Balance (EUR) Sep | -0.01B | -4.05B | -9.57B | | 10:00 | EUR | Eurozone CPI Y/Y Oct F | 10.60% | 10.70% | 10.70% | | 10:00 | EUR | Eurozone CPI Core Y/Y Oct F | 5.00% | 5.00% | 5.00% | | 13:30 | USD | Building Permits Oct | 1.53M | 1.52M | 1.56M | | 13:30 | USD | Housing Starts Oct | 1.43M | 1.42M | 1.44M | 1.49M | | 13:30 | USD | Initial Jobless Claims (Nov 11) | 222K | 220K | 225K | 226K | | 13:30 | USD | Philadelphia Fed Survey Nov | -19.4 | -6 | -8.7 | | 15:30 | USD | Natural Gas Storage | 66B | 79B |
|
|
|
