Euro Sees Modest Recovery Amid Improved Economic Sentiment, Canadian Down after CPI
| Action Insight Daily Report 4-16-24 |
Euro Sees Modest Recovery Amid Improved Economic Sentiment, Canadian Down after CPI |
Euro rises broadly today, lifted by significant improvement in economic sentiment indicators from Germany and the broader Eurozone. Despite these positive signals, current situation assessment remains subdued. While the worst may be over for Germany's economy, in particular the manufacturing sector, recovery is still in its nascent stages and further nurturing is required. The uptick in Euro is more likely a corrective move rather than a definitive trend reversal, given the overall weak momentum of the common currency. Sterling is ranking as the second strongest performer for the day, next to Euro. The Pound largely overlooks the uptick in UK unemployment rate. Market focus remains on the persistently high wage inflation. Current conditions suggest it is still premature for BoE to consider interest rate cuts, as wage pressures do not yet show signs of significant easing... |
EUR/USD Mid-Day Outlook Daily Pivots: (S1) 1.0608; (P) 1.0636; (R1) 1.0653; More... A temporary low is in place at 1.0601 in EUR/USD with 4H MACD crossed above signal line. Intraday bias is turned neutral for consolidations first. While stronger recovery cannot be ruled out, upside should be limited by 1.0723 support turned resistance. On the downside, break of 1.0601 will resume the decline from 1.1138 to 100% projection of 1.1138 to 1.0694 from 1.0980 at 1.0536 next. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 02:00 | CNY | GDP Y/Y Q1 | 5.30% | 5.00% | 5.20% | | 02:00 | CNY | Retail Sales Y/Y Mar | 3.10% | 5.10% | 5.50% | | 02:00 | CNY | Industrial Production Y/Y Mar | 4.50% | 6.00% | 7.00% | | 02:00 | CNY | Fixed Asset Investment YTD Y/Y Mar | 4.50% | 4.30% | 4.20% | | 06:00 | GBP | Claimant Count Change Mar | 10.9K | 17.2K | 16.8K | 4.1K | | 06:00 | GBP | ILO Unemployment Rate (3M) Feb | 4.20% | 4.00% | 3.90% | 4.00% | | 06:00 | GBP | Average Earnings Including Bonus 3M/Y Feb | 5.60% | 5.50% | 5.60% | | 06:00 | GBP | Average Earnings Excluding Bonus 3M/Y Feb | 6.00% | 6.10% | | 09:00 | EUR | Eurozone Trade Balance (EUR) Feb | 17.9B | 27.3B | 28.1B | 27.1B | | 09:00 | EUR | Germany ZEW Economic Sentiment Apr | 42.9 | 35.1 | 31.7 | | 09:00 | EUR | Germany ZEW Current Situation Apr | -79.2 | -80.5 | | 09:00 | EUR | Eurozone ZEW Economic Sentiment Apr | 43.9 | 37.2 | 33.5 | | 12:30 | CAD | CPI M/M Mar | 0.60% | 0.70% | 0.30% | | 12:30 | CAD | CPI Y/Y Mar | 2.90% | 2.80% | | 12:30 | CAD | CPI Median Y/Y Mar | 2.80% | 3.00% | 3.10% | 3.00% | | 12:30 | CAD | CPI Trimmed Y/Y Mar | 3.10% | 3.20% | 3.20% | | 12:30 | CAD | CPI Common Y/Y Mar | 2.90% | 3.10% | 3.10% | | 12:30 | USD | Building Permits Mar | 1.32M | 1.51M | 1.52M | 1.55M | | 12:30 | USD | Housing Starts Mar | 1.46M | 1.48M | 1.52M | | 13:15 | USD | Industrial Production M/M Mar | 0.40% | 0.10% | | 13:15 | USD | Capacity Utilization Mar | 78.50% | 78.30% |
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