Risk Aversion Deepens as US Non-Farm Payrolls Fall Short of Expectations
| Action Insight Mid-Day Report 8-2-24 |
Risk Aversion Deepens as US Non-Farm Payrolls Fall Short of Expectations |
Risk aversion is intensifying in early US session after non-farm payroll report significantly missed expectations on all fronts. This follows yesterday's poor manufacturing data, which has already sparked discussions about a hard landing for the US economy. The weak job data is likely to fuel these concerns further, as stock futures are tumbling sharply, pointing to a notably lower open. In the financial markets, stock futures tumble sharply and are pointing to a sharply lower open. Meanwhile, 10-year yield is extending this week's steep decline and is set to challenge 3.8% mark. Dollar's reaction to these developments has been complex. It continues to decline against safe-haven currencies such as Yen and the Swiss Franc. However, it remains steady against commodity currencies due to the offsetting impact of diving Treasury yields and prevailing risk-off sentiment. The greenback is holding onto most of its gains against Sterling for the week but is showing weakness against the euro, which is also surging against the Pound... |
USD/JPY Mid-Day Outlook Daily Pivots: (S1) 148.42; (P) 151.16; (R1) 152.72; More... USD/JPY's steep decline from 161.94 reaccelerates to as low as 147.01 so far. There is no sign of bottoming yet and intraday bias stays on the downside. Next target is 140.25 fibonacci level. On the upside, above 150.88 minor resistance will turn intraday bias neutral and bring consolidations first, before staging another fall. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 23:50 | JPY | Monetary Base Y/Y Jul | 1.00% | 0.90% | 0.60% | | 01:30 | AUD | PPI Q/Q Q2 | 1.00% | 1.00% | 0.90% | | 01:30 | AUD | PPI Y/Y Q2 | 4.80% | 4.30% | | 06:30 | CHF | CPI M/M Jul | -0.20% | -0.20% | 0.00% | | 06:30 | CHF | CPI Y/Y Jul | 1.30% | 1.30% | 1.30% | | 06:45 | EUR | France Industrial Output M/M Jun | 0.80% | 0.90% | -2.10% | -2.20% | | 07:30 | CHF | Manufacturing PMI Jul | 43.5 | 44.6 | 43.9 | | 08:00 | EUR | Italy Industrial Output M/M Jun | 0.50% | -0.20% | 0.50% | | 09:00 | EUR | Italy Retail Sales M/M Jun | -0.20% | 0.20% | 0.40% | | 12:30 | USD | Nonfarm Payrolls Jul | 114K | 176K | 206K | 179K | | 12:30 | USD | Unemployment Rate Jul | 4.30% | 4.10% | 4.10% | | 12:30 | USD | Average Hourly Earnings M/M Jul | 0.20% | 0.30% | 0.30% | | 14:00 | USD | Factory Orders M/M Jun | 0.50% | -0.50% |
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