Dollar Rises on Relative Yield Strength and Economic Optimism
| Action Insight Mid-Day Report 2-8-24 |
Dollar Rises on Relative Yield Strength and Economic Optimism |
Dollar rises broadly in early US session, standing out in a day characterized by relatively slow news flow. The move in the greenback can be primarily attributed to the rise in US benchmark yields, which outpaced those of other regions, thereby bolstering the greenback's appeal. Sentiment surrounding the US market remains positive, with traders showing confidence in resilience of the US economy. This optimism persists despite expectations that Fed's cycle of interest rate cuts may commence later than previously anticipated. The development is fostering a relatively unusual scenario where Dollar, yields, and stocks may ascend in tandem, a convergence that could persist until the correlation dynamics shift... |
USD/JPY Mid-Day Outlook Daily Pivots: (S1) 147.79; (P) 148.02; (R1) 148.42; More... USD/JPY's rally from 140.25 is in progress and intraday bias remains on the upside. Further rally is expected to retest 151.89/93 key resistance zone. Decisive break there will confirm resumption of larger up trend. On the downside, below 147.62 minor support will turn intraday bias neutral first. But near term outlook will remain cautiously bullish as long as 145.88 support holds. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 23:50 | JPY | Bank Lending Y/Y Jan | 3.10% | 3.20% | 3.10% | 3.00% | | 00:01 | GBP | RICS Housing Price Balance Jan | -18% | -28% | -30% | | 01:30 | CNY | CPI Y/Y Jan | -0.80% | -0.50% | -0.30% | | 01:30 | CNY | PPI Y/Y Jan | -2.50% | -2.60% | -2.70% | | 05:00 | JPY | Eco Watchers Survey: Current Jan | 50.2 | 50.3 | 50.7 | | 09:00 | EUR | ECB Economic Bulletin | | 13:30 | USD | Initial Jobless Claims (Feb 2) | 218K | 220K | 224K | 227K | | 15:00 | USD | Wholesale Inventories Dec F | 0.40% | 0.40% | | 15:30 | USD | Natural Gas Storage | -73B | -197B |
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