Swiss Franc Gains Against Euro, Kiwi Struggle Continues
| Action Insight Mid-Day Report 4-20-23 |
Swiss Franc Gains Against Euro, Kiwi Struggle Continues |
Swiss Franc is currently the strongest performer for the day, showing a notable gain the Euro. Japanese Yen and Australian Dollar follow closely, indicating that the market moves are not predominantly driven by risk aversion. In contrast, New Zealand Dollar is the weakest, as lower-than-expected inflation data increases hopes that RBNZ is nearing a pause in its rate hikes. The Canadian Dollar is the second-worst currency for the day, as it trails falling oil prices. Dollar is on the softer side, as it follows declining Treasury yields. Euro is mixed, seemingly unaffected by comments from ECB officials and the release of March meeting minutes. From a technical perspective, EUR/CHF appears ready to resume its decline from 0.9995, passing the temporary low of 0.9797. This drop is considered part of the corrective pattern from the January high of 1.0095. Deeper fall to 0.9704 support and below is expected. If there is a firm break below 0.9797, downside acceleration could exert pressure on Euro in other pairs, limiting its rally momentum. In Europe, at the time of writing, FTSE is down -0.16%. DAX is down -0.86%. CAC is down -0.37%. Germany 10-year yield is down -0.0412 at 2.475. Earlier in Asia, Nikkei rose 0.18%. Hong Kong HSI rose 0.14%. China Shanghai SSE dropped -0.09%. Singapore Strait Times dropped -0.32%. Japan 10-year JGB yield is down -0.0078 at 0.470. |
USD/CHF Mid-Day Outlook Daily Pivots: (S1) 0.8955; (P) 0.8979; (R1) 0.9000; More... USD/CHF dips notably after rejection by 55 4H EMA, but stays well above 0.8858 low. Intraday bias remains neutral for the moment. Another decline cannot be ruled out with 0.9070 support turned resistance intact. On the downside, below 0.8858 will resume the down trend to 61.8% projection of 1.0146 to 0.9058 from 0.9439 at 0.8767, which is close to 0.8756 long term support. Strong support is expected there to bring rebound, at least on first attempt. On the upside, break of 0.9070 support turned resistance will confirm short term bottoming and turn bias back to the upside. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 22:45 | NZD | CPI Q/Q Q1 | 1.20% | 1.50% | 1.40% | | 22:45 | NZD | CPI Y/Y Q1 | 6.70% | 7.00% | 7.20% | | 23:50 | JPY | Trade Balance (JPY) Mar | -1.21T | -1.78T | -1.19T | -1.25T | | 01:30 | AUD | NAB Business Confidence Q1 | -4 | -1 | | 04:30 | JPY | Tertiary Industry Index M/M Feb | 0.70% | 0.40% | 0.90% | 0.70% | | 06:00 | EUR | Germany PPI M/M Mar | -2.60% | -0.50% | -0.30% | | 06:00 | EUR | Germany PPI Y/Y Mar | 7.50% | 9.80% | 15.80% | | 11:30 | EUR | ECB Monetary Policy Meeting Accounts | | 12:30 | USD | Initial Jobless Claims (Apr 14) | 245K | 238K | 239K | 240K | | 12:30 | USD | Philadelphia Fed Manufacturing Survey Apr | -31.3 | -19.1 | -23.2 | | 14:00 | USD | Existing Home Sales Mar | 4.50M | 4.58M | | 14:00 | EUR | Eurozone Consumer Confidence Apr P | -18 | -19 | | 14:30 | USD | Natural Gas Storage | 69B | 25B |
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