Loonie Slips on Soft Inflation, Broader Market Stays Quiet as Traders Await Fed
| Action Insight Mid-Day Report 9-17-24 |
Loonie Slips on Soft Inflation, Broader Market Stays Quiet as Traders Await Fed |
Canadian Dollar is broadly lower in early US trading following weaker-than-expected inflation data. With CPI decelerating further than anticipated, this set of data provides BoC some breathing room to ease monetary policy more aggressively if necessary. The spotlight now shifts to the upcoming September employment report, which will be crucial in determining whether BoC sticks to its current pace of a 25bps rate cut at its October 24 meeting, or more. Meanwhile, Dollar is edging slightly higher after stronger-than-expected ex-auto sales data. Euro remains mixed despite poor German economic sentiment figures. Overall, market movements are relatively muted as traders appear to be holding their major bets ahead of tomorrow's FOMC rate decision. While Fed is widely expected to begin its policy loosening cycle, the uncertainty remains around whether the rate cut will be 25bps or a larger 50bps reduction.... |
USD/CHF Mid-Day Outlook Daily Pivots: (S1) 0.8426; (P) 0.8457; (R1) 0.8479; More… USD/CHF is still bounded in range trading and intraday bias remains neutral for the moment. With 0.8548 resistance intact, further decline is still expected. On the downside, break of 0.8374 will resume the fall from 0.9223 to retest 0.8332 low. Decisive break there will indicate larger down trend resumption. However, considering bullish convergence condition in 4H MACD, break of 0.8548 resistance will confirm short term bottoming, and turn bias back to the upside for 0.8747 resistance. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 04:30 | JPY | Tertiary Industry Index M/M Jul | 1.40% | 1.00% | -1.30% | | 09:00 | EUR | Germany ZEW Economic Sentiment Sep | 3.6 | 18.6 | 19.2 | | 09:00 | EUR | Germany ZEW Current Situation Sep | -84.5 | -77.3 | | 09:00 | EUR | Germany ZEW Economic Sentiment Sep | 9.3 | 17.6 | 17.9 | | 12:15 | CAD | Housing Starts Y/Y Aug | 217K | 246K | 280K | | 12:30 | CAD | CPI M/M Aug | -0.20% | 0.20% | 0.40% | | 12:30 | CAD | CPI Y/Y Aug | 2.00% | 2.10% | 2.50% | | 12:30 | CAD | CPI Median Y/Y Aug | 2.30% | 2.20% | 2.40% | | 12:30 | CAD | CPI Trimmed Y/Y Aug | 2.40% | 2.50% | 2.70% | | 12:30 | CAD | CPI Common Y/Y Aug | 2.00% | 2.20% | 2.20% | | 12:30 | USD | Retail Sales M/M Aug | 0.10% | -0.10% | 1.00% | 1.10% | | 12:30 | USD | Retail Sales ex Autos M/M Aug | 0.10% | 0.20% | 0.40% | | 13:15 | USD | Industrial Production M/M Aug | 0.80% | 0.20% | -0.60% | -0.90% | | 13:15 | USD | Capacity Utilization Aug | 78.00% | 77.90% | 77.80% | 77.40% | | 14:00 | USD | Business Inventories Jul | 0.40% | 0.30% | | 14:00 | USD | NAHB Housing Market Index Sep | 42 | 39 |
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