Dollar Selloff Resumes after PPI Miss
| Action Insight Mid-Day Report 8-11-22 |
Dollar Selloff Resumes after PPI Miss |
Dollar selloff resumes in early US session after lower than expected PPI reading. Aussie and Kiwi are strong as supported by risk-on sentiments but Canadian is lagging behind. Yen is also firm, together with Swiss Franc, thanks to falling yields. Euro and Sterling continue to be mixed. In other markets, Gold is struggling to take out 1800 handle decisively, but bias stays on the upside. WTI crude oil recovering, with relatively weak momentum. Technically, GBP/CHF's break of 1.1525 support this week suggests that down trend from 1.3070 is resuming. Next target is 161.8% projection of 1.3070 to 1.2134 from 1.2598 at 1.1084. The question is when EUR/CHF will follow and break through 0.9697 low. In Europe, at the time of writing, FTSE is down -0.51%. DAX is up 0.16%. CAC is down -0.02%. Germany 10-year yield is down -0.0001 at 0.890. Earlier in Asia, Japan was on holiday. Hong Kong HSI rose 2.40%. China Shanghai SSE rose 1.60%. Singapore Strait Times rose 0.48%. |
USD/JPY Mid-Day Outlook Daily Pivots: (S1) 131.51; (P) 133.41; (R1) 134.79; More... USD/JPY's recovery from 130.38 should have completed at 135.57 and fall from 139.37 is resume to resume. Intraday bias is back on the downside for 130.38 support first. Break there will target 100% projection of 139.37 to 130.38 from 135.57 at 126.58. As such decline is seen as a corrective move, strong support should be seen from 126.35 to contain downside. But for now, risk will remain on the downside as long as 135.57 resistance holds, in case of recovery. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 23:01 | GBP | RICS Housing Price Balance Jul | 63% | 60% | 65% | | 01:00 | AUD | Consumer Inflation Expectations Aug | 5.90% | 6.30% | | 12:30 | USD | PPI M/M Jul | -0.50% | 0.20% | 1.10% | | 12:30 | USD | PPI Y/Y Jul | 9.80% | 10.40% | 11.30% | | 12:30 | USD | PPI Core M/M Jul | 0.20% | 0.40% | 0.40% | | 12:30 | USD | PPI Core Y/Y Jul | 7.60% | 7.60% | 8.20% | | 12:30 | USD | Initial Jobless Claims (Aug 5) | 262K | 265K | 260K | 248K | | 14:30 | USD | Natural Gas Storage | 40B | 41B |
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