Sterling and Euro Gain on Central Bank Patience, Swiss Franc Falls
| Action Insight Mid-Day Report 2-7-24 |
Sterling and Euro Gain on Central Bank Patience, Swiss Franc Falls |
Sterling, and to a lesser extent, Euro, are propelled slightly higher by hawkish comments from key figures in BoE and ECB. These officials have adopted a stance of patience, preferring to wait for additional economic data before making any decisions on interest rate cuts. Their cautious approach has also lifted benchmark yields in the UK and Eurozone. Swiss Franc is under notable pressure against these two European peers, and the selloff pushes the Franc to the bottom of the currency performance chart of the day. On another front, Dollar is having a downshift together with Yen, continuing its consolidation phase. Despite this, the selling pressure on Dollar is relatively subdued, indicating that while it faces a pullback, investor confidence in the greenback hasn't entirely waned. In contrast, New Zealand Dollar shines as the day's most robust performer, eclipsing Pound with its strength. This development occurs within a broader context of cautious optimism pervading the global stock markets, which also provides a buoyant backdrop for other commodity-linked currencies such as Australian and Canadian Dollars.... |
EUR/CHF Mid-Day Outlook Daily Pivots: (S1) 0.9340; (P) 0.9361; (R1) 0.9375; More... Intraday bias in EUR/CHF stays mildly on the upside for the moment, as rebound from 0.9304 extends today. As noted before, pullback from 0.9471 could have completed at 0.9304 already. Rise from there would extend to 0.9471 resistance first. On the downside, break of 0.9337 will delay this bullish case, and bring another decline. But still, downside should be contained above 0.9252 low to bring rebound. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 21:45 | NZD | Employment Change Q4 | 0.40% | 0.30% | -0.20% | -0.10% | | 21:45 | NZD | Unemployment Rate Q4 | 4.00% | 4.30% | 3.90% | | 21:45 | NZD | Labour Cost Index Q/Q Q4 | 1.00% | 0.80% | 0.80% | | 05:00 | JPY | Leading Economic Index Dec P | 110 | 109.5 | 107.6 | | 06:45 | CHF | Unemployment Rate M/M Jan | 2.20% | 2.20% | 2.20% | | 07:00 | EUR | Germany Industrial Production M/M Dec | -1.60% | -0.20% | -0.70% | | 07:45 | EUR | France Trade Balance (EUR) Dec | -6.8B | -6.0B | -5.9B | | 08:00 | CHF | Foreign Currency Reserves (CHF) Jan | 662B | 654B | | 09:00 | EUR | Italy Retail Sales M/M Dec | -0.10% | 0.20% | 0.40% | 0.30% | | 13:30 | USD | Trade Balance (USD) Dec | -62.2B | -62.3B | -63.2B | -61.9B | | 13:30 | CAD | Trade Balance (CAD) Dec | -0.3B | 1.1B | 1.6B | 1.1B | | 15:30 | USD | Crude Oil Inventories | 1.7M | 1.2M | | 18:30 | CAD | BoC Summary of Deliberations |
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