Dollar Mixed as FOMC Looms, Aussie Selloff Continues
| Action Insight Mid-Day Report 7-26-23 |
Dollar Mixed as FOMC Looms, Aussie Selloff Continues |
The financial markets appear to be a little on risk-off mode today, as FOMC rate decision is awaited. Additionally, ECB will announce policy decision tomorrow, followed by BoJ on Friday. Commodity currencies are the worst performers so far, as led by Aussie which was pressured following CPI data earlier today. Yen is currently the strongest, followed by Swiss Franc, and then Euro. Dollar, however, is overall just steady. Fed will raise interest rate by another 25bps to 5.25-5.50% later today, and there is practically no chance for a deviation from this widely expected decision. The question is whether Chair Jerome Powell would give any guidance on the next move. And the answer is likely a "no", given that two rounds of inflation and employment data are coming in before next FOMC meeting in September. Therefore, unless the Fed shifts from a wait-and-see stance and its commitment to quelling inflation, the event may not significantly roil the markets. In Europe, at the time of writing, FTSE is down -0.75%. DAX is down -1.20%. CAC is down -2.15%. Germany 10-year yield is up 0.032 at 2.457. Earlier in Asia, Nikkei dropped -0.04%. Hong Kong HSI dropped -0.36%. China Shanghai SSE dropped -0.26%. Singapore Strait Times rose 0.57%. Japan 10-year JGB yield dropped -0.0191 to 0.448. |
GBP/USD Mid-Day Outlook Daily Pivots: (S1) 1.2840; (P) 1.2872; (R1) 1.2935; More... GBP/USD's recovery from 1.2796 continues today but stays below 1.2963 minor resistance. Intraday bias remains neutral at this point. On the downside, below 1.2796 will resume the fall from 1.3141 to 55 D EMA (now at 1.2703) and possibly below. On the upside, break of 1.2963 minor resistance will turn bias back to the upside retest 1.3141 high instead. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 23:50 | JPY | Corporate Service Price Index Y/Y Jun | 1.20% | 1.50% | 1.60% | 1.70% | | 01:30 | AUD | Monthly CPI Y/Y Jun | 5.40% | 5.40% | 5.60% | 5.50% | | 01:30 | AUD | CPI Q/Q Q2 | 0.80% | 1.00% | 1.40% | | 01:30 | AUD | CPI Y/Y Q2 | 6.00% | 6.20% | 7.00% | | 01:30 | AUD | RBA Trimmed Mean CPI Q/Q Q2 | 0.90% | 1.10% | 1.20% | | 01:30 | AUD | RBA Trimmed Mean CPI Y/Y Q2 | 5.90% | 6.00% | 6.60% | | 08:00 | CHF | Credit Suisse Economic Expectations Jul | -32.6 | -30.8 | | 08:00 | EUR | Eurozone M3 Money Supply Y/Y Jun | 0.60% | 1.00% | 1.40% | | 14:00 | USD | New Home Sales Jun | 720K | 763K | | 14:30 | USD | Crude Oil Inventories | -2.2M | -0.7M | | 17:30 | CAD | BOC Summary of Deliberations | 6.70% | 7.10% | | 18:00 | USD | Fed Interest Rate Decision | 5.50% | 5.25% | | 18:30 | USD | FOMC Press Conference |
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