Swiss Franc Rebounds on Strong Inflation Data, Yen Standing Tall
| Action Insight Mid-Day Report 5-2-24 |
Swiss Franc Rebounds on Strong Inflation Data, Yen Standing Tall |
Swiss Franc saw a significant rebound in European session, driven by stronger-than-expected inflation figures for April. Despite this upside surprise, inflation remained within SNB's target range of 0-2% for the eleventh consecutive month. Currently, economists are still largely anticipating a further 25 basis point rate cut by SNB in June, which would adjust the policy rate to a more neutral level of 1.25%. However, these expectations could be subject to change should inflation figures for May indicate acceleration again. Meanwhile, Japanese Yen continues to dominate as the strongest currency for the week, bolstered by significant spikes on Monday and Wednesday. Despite Japan's top currency diplomat Masato Kanda refraining from confirming any market interventions, reports suggest that as much as JPY 3.5T may have been deployed in market operations on Wednesday. This speculation has solidified 160 mark as a firm ceiling for USD/JPY for now. We're are now keenly waiting to see if upcoming US non-farm payroll data tomorrow might trigger further pullback in USD/JPY... |
USD/CHF Mid-Day Outlook Daily Pivots: (S1) 0.9128; (P) 0.9176; (R1) 0.9207; More.... Intraday bias in USD/CHF remains neutral for the moment. Further rally is still in favor as long as 0.9087 support holds. On the upside, above 0.9223 will resume larger rally to 0.9243 resistance. Decisive break there will carry larger bullish implication. However, firm break of 0.9087 will indicate rejection by 0.9243 and turn bias back to the downside 0.9009 support instead. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 22:45 | NZD | Building Permits M/M Mar | -0.20% | 14.90% | 15.90% | | 23:50 | JPY | Monetary Base Y/Y Apr | 2.10% | 1.70% | 1.60% | | 23:50 | JPY | BoJ Meeting Minutes | | 01:30 | AUD | Building Permits M/M Mar | 1.90% | 3.20% | -1.90% | -0.90% | | 01:30 | AUD | Trade Balance (AUD) Apr | 5.02B | 7.37B | 7.28B | 6.59B | | 05:00 | JPY | Consumer Confidence Apr | 38.3 | 39.5 | 39.5 | | 06:30 | CHF | Real Retail Sales Y/Y Mar | -0.10% | 0.20% | -0.20% | | 06:30 | CHF | CPI M/M Apr | 0.30% | 0.20% | 0.00% | | 06:30 | CHF | CPI Y/Y Apr | 1.40% | 1.10% | 1.00% | | 07:30 | CHF | Manufacturing PMI Apr | 41.4 | 45.8 | 45.2 | | 07:45 | EUR | Italy Manufacturing PMI Apr | 47.3 | 49.8 | 50.4 | | 07:50 | EUR | France Manufacturing PMI Apr F | 45.3 | 44.9 | 44.9 | | 07:55 | EUR | Germany Manufacturing PMI Apr F | 42.5 | 42.2 | 42.2 | | 08:00 | EUR | Eurozone Manufacturing PMI Apr F | 45.7 | 45.6 | 45.6 | | 11:30 | USD | Challenger Job Cuts Y/Y Apr | -3.30% | 0.70% | | 12:30 | CAD | Trade Balance (CAD) Mar | -2.3B | 1.0B | 1.4B | | 12:30 | USD | Trade Balance (USD) Mar | -69.4B | -69.3B | -68.9B | | 12:30 | USD | Initial Jobless Claims (Apr 26) | 208K | 212K | 207K | 208K | | 12:30 | USD | Nonfarm Productivity Q1 P | 0.30% | 0.80% | 3.20% | | 12:30 | USD | Unit Labor Costs Q1 P | 4.70% | 3.20% | 0.40% | | 14:00 | USD | Factory Orders M/M Mar | 1.60% | 1.40% | | 14:30 | USD | Natural Gas Storage | 68B | 92B |
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