Euro and Pound Feel PMI Squeeze, While Yen's Descent Continues
| Action Insight Mid-Day Report 9-22-23 |
Euro and Pound Feel PMI Squeeze, While Yen's Descent Continues |
Yen languishes as the day's worst performer, with sentiments taking a hit due to BoJ's silence on potential policy tweaks. European majors aren't faring much better, as subpar PMI data from both Eurozone and UK echo the sentiment that further tightening might not be on the cards for ECB and BoE. The Swiss Franc also feels the pressure, even if the pace of its earlier slide has decelerated. Conversely, commodity currencies are flexing their muscles, spearheaded by the New Zealand Dollar. The notable rebound in Hong Kong stocks could be providing a boost to both Aussie and Kiwi. Enthusiasm is mounting over the possibility of China's economic recovery picking up pace during the latter part of the year. Meanwhile, Dollar offers a mixed performance, battling to re-establish its momentum against the likes of the Yen and the Euro. Technically, as the week comes to a close, a focus will be on whether EUR/GBP could close above 0.8700 resistance. If realized, that would be an indication what fall from 0.8977 has completed, as well as the three wave down trend from 0.9267. That would set the stage for more medium term rally back to 0.8977 resistance levels. In Europe, at the time of writing, FTSE is up 0.65%. DAX is up 0.00%. CAC is down -0.41%. Germany 10-year yield is up 0.013 at 2.752. Earlier in Asia, Nikkei dropped -0.52%. Hong Kong HSI rose 2.28%. China Shanghai SSE is rose 1.55%. Singapore Strait Times dropped -0.33%. Japan 10-year JGB yield dropped -0.0041 to 0.749. |
GBP/USD Mid-Day Outlook Daily Pivots: (S1) 1.2237; (P) 1.2293; (R1) 1.2352; More... GBP/USD's decline continues today and intraday bias stays on the downside. Current fall from 1.3141 should target 1.2075 fibonacci level. On the upside, above 1.2369 minor resistance will turn intraday bias neutral and bring consolidations. But near term outlook will stay bearish as long as 1.2618 support turned resistance holds, in case of strong recovery. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 22:45 | NZD | Trade Balance (NZD) Aug | -2291M | -1107M | -1177M | | 23:00 | AUD | Manufacturing PMI Sep P | 48.2 | 49.6 | | 23:00 | AUD | Services PMI Sep P | 50.5 | 47.8 | | 23:01 | GBP | GfK Consumer Confidence Sep | -21 | -27 | -25 | | 23:30 | JPY | National CPI Y/Y Aug | 3.20% | 3.30% | | 23:30 | JPY | National CPI ex-Fresh Food Y/Y Aug | 3.10% | 3.00% | 3.10% | | 23:30 | JPY | National CPI ex Food Energy Y/Y Aug | 4.30% | 4.30% | | 00:30 | JPY | Manufacturing PMI Sep P | 48.6 | 49.9 | 49.6 | | 02:52 | JPY | BoJ Interest Rate Decision | -0.10% | -0.10% | -0.10% | | 06:00 | GBP | Retail Sales M/M Aug | 0.40% | 0.50% | -1.20% | -1.10% | | 07:15 | EUR | France Manufacturing PMI Sep P | 43.6 | 46 | 46 | | 07:15 | EUR | France Services PMI Sep P | 43.9 | 46 | 46 | | 07:30 | EUR | Germany Manufacturing PMI Sep P | 39.8 | 39.5 | 39.1 | | 07:30 | EUR | Germany Services PMI Sep P | 49.8 | 47.1 | 47.3 | | 08:00 | EUR | Eurozone Manufacturing PMI Sep P | 43.4 | 44 | 43.5 | | 08:00 | EUR | Eurozone Services PMI Sep P | 48.4 | 47.5 | 47.9 | | 08:30 | GBP | Manufacturing PMI Sep P | 44.2 | 43 | 43 | | 08:30 | GBP | Services PMI Sep P | 47.2 | 49 | 49.5 | | 12:30 | CAD | Retail Sales M/M Jul | 0.30% | 0.40% | 0.10% | | 12:30 | CAD | Retail Sales ex Autos M/M Jul | 1.00% | 0.50% | -0.80% | -0.70% | | 13:45 | USD | Manufacturing PMI Sep P | 47.8 | 47.9 | | 13:45 | USD | Services PMI Sep P | 50.3 | 50.5 |
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