Yen Softens Amid Rising Treasury Yields, But Loss Limited
| Action Insight Mid-Day Report 6-7-23 |
Yen Softens Amid Rising Treasury Yields, But Loss Limited |
Yen is encountering renewed selling pressure, particularly against European majors. This weakness is partly attributed to the rising treasury yields that have dampened enthusiasm for the Japanese currency. However, its losses remain contained for the moment. On the other hand, Australian Dollar is seeking to prolong its short-term rally, most notably against New Zealand Dollar. The Sterling is trailing closely as the second strongest, buoyed by buying against a weaker Euro. Conversely, the Dollar is currently lagging, second only to Kiwi in terms of weak performance, followed closely by Yen. Canadian Dollar is exhibiting a mixed performance as market participants eagerly await Bank of Canada's rate decisions. Technically, there is prospect of a bounce in EUR/CAD, considering that it's now close to 1.4236 cluster support (38.2% retracement of 1.2867 to 1.5111 at 1.4254). Break of 1.4510 minor resistance will suggest that the corrective fall from 1.5111 has completed and bring stronger rebound back to 55 D EMA (now at 1.4615) and above. Nevertheless, decisive break of 1.236 could path the way to 61.8% retracement at 1.3724. Direction of the cross will likely become clear shortly after the Bank of Canada's decision. |
USD/JPY Mid-Day Outlook Daily Pivots: (S1) 139.16; (P) 139.57; (R1) 140.05; More... USD/JPY is still extending the consolidation from 140.90 and intraday bias stays neutral for the moment. With 138.22 minor support intact, further rally is expected. On the upside, break of 140.90 will resume larger rise from 127.20 to 142.48 fibonacci level. However, considering bearish divergence condition in 4 hour MACD, break of 138.22 will confirm short term topping, and turn bias back to the downside for 55 D EMA (now at 136.35). | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 01:30 | AUD | GDP Q/Q Q1 | 0.20% | 0.30% | 0.50% | 0.60% | | 03:00 | CNY | Trade Balance (USD) May | 65.8B | 94.2B | 90.2B | | 05:00 | JPY | Leading Economic Index Apr P | 97.60% | 98.30% | 97.50% | 97.70% | | 05:45 | CHF | Unemployment Rate M/M May | 2.00% | 1.90% | 1.90% | | 06:00 | EUR | Germany Industrial Production M/M Apr | 0.30% | 0.80% | -3.40% | -2.10% | | 06:45 | EUR | France Trade Balance (EUR) Apr | -9.7B | -7.7B | -8.0B | -8.4B | | 07:00 | CHF | Foreign Currency Reserves (CHF) May | 734B | 732B | | 08:00 | EUR | Italy Retail Sales M/M Apr | 0.20% | 0.40% | 0.00% | | 12:30 | USD | Trade Balance (USD) Apr | -74.6B | -75.3B | -64.2B | -60.6B | | 12:30 | CAD | Labor Productivity Q/Q Q1 | -0.60% | 0.00% | -0.50% | | 12:30 | CAD | Trade Balance (CAD) Apr | 1.9B | 0.1B | 1.0B | 0.2B | | 14:00 | CAD | BoC Interest Rate Decision | 4.50% | 4.50% | | 14:30 | USD | Crude Oil Inventories | 1.2M | 4.5M |
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