Markets Tread Water ahead of Fed Hike and Guidance
| Action Insight Mid-Day Report 11-2-22 |
Markets Tread Water ahead of Fed Hike and Guidance |
The financial markets are all very steady today, awaiting FOMC rate decision. A 75bps hike a done deal, and the key is whether Fed Chair Jerome Powell would signal slower tightening pace ahead. For now, Dollar is the weaker one for today, followed by Euro and Sterling. On the other hand, Yen is the stronger one together with Aussie and Kiwi. But of course, such picture could change drastically after FOMC. Post FOMC press conference market movements, in stocks, bonds and FX, should largely be driven by risk sentiment. AUD/USD has the potential to have larger moves than other Dollar pairs. Technically, break of 0.6355 minor support will signal that corrective rebound from 0.6169 has completed, and selloff could intensify through this low quickly. On the other hand, firm break of 0.6530 will add to the case of larger reversal, and bring stronger rise to 0.6698/6915 resistance zone. In Europe, at the time of writing, FTSE is down -0.08%. DAX is flat. CAC is down -0.10%. Germany 10-year yield is up 0.016 at 2.147. Earlier in Asia, Nikkei dropped -0.06%. Hong Kong HSI rose 2.41%. China Shanghai SSE rose 1.15%. Singapore Strait Times rose 0.34%. Japan 10-year JGB yield dropped -0.0052 to 0.247. |
EUR/USD Mid-Day Outlook Daily Pivots: (S1) 0.9833; (P) 0.9894; (R1) 0.9934; More... EUR/USD is staying in range of 0.9847/1.0092 and intraday bias remains neutral. Further rise is in favor as long as 0.9847 minor support holds. Break of 1.0092 will target 38.2% retracement of 1.1494 to 0.9534 at 1.0283. However, break of 0.9847 will turn bias back to the downside for 0.9534/9630 support zone instead. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
|---|
| 21:30 | AUD | AiG Performance of Mfg Index Oct | 49.6 | 50.2 | | 21:45 | NZD | Employment Change Q3 | 1.30% | 0.50% | 0.00% | | 21:45 | NZD | Unemployment Rate Q3 | 3.30% | 3.20% | 3.30% | | 21:45 | NZD | Labour Cost Index Q/Q Q3 | 1.10% | 1.00% | 1.30% | | 23:50 | JPY | Monetary Base Y/Y Oct | -6.90% | -2.00% | -3.30% | | 23:50 | JPY | BoJ Minutes | | 00:01 | GBP | BRC Shop Price Index Y/Y Sep | 6.60% | 5.50% | 5.70% | | 00:30 | AUD | Building Permits M/M Sep | -5.80% | -9.00% | 28.10% | 23.10% | | 07:00 | EUR | Germany Trade Balance (EUR) Sep | 3.7B | 0.5B | 1.2B | | 08:45 | EUR | Italy Manufacturing PMI Oct | 46.5 | 46.9 | 48.3 | | 08:50 | EUR | France Manufacturing PMI Oct F | 47.2 | 47.4 | 47.4 | | 08:55 | EUR | Germany Unemployment Change Oct | 8K | 15K | 14K | | 08:55 | EUR | Germany Unemployment Rate Oct | 5.50% | 5.50% | 5.50% | | 08:55 | EUR | Germany Manufacturing PMI Oct F | 45.1 | 45.7 | 45.7 | | 09:00 | EUR | Eurozone Manufacturing PMI Oct | 46.4 | 46.6 | 46.6 | | 12:15 | USD | ADP Employment Change Oct | 239K | 198K | 208K | 192K | | 14:30 | USD | Crude Oil Inventories | -0.2M | 2.6M | | 18:00 | USD | Fed Interest Rate Decision | 4.00% | 3.25% | | 18:30 | USD | FOMC Press Conference |
|
|
|
