Sterling Slides on Budget Fallout; US Stocks Tumble Ahead of NFP
| Action Insight Daily Report 11-1-24 |
Sterling Slides on Budget Fallout; US Stocks Tumble Ahead of NFP |
Sterling has faced significant selling pressure as markets reacted negatively to the Labour government's budget announcement. Some analysts draw comparisons to the free fall following former Prime Minister Liz Truss's mini-budget two years ago. Yet, the current selloff is notably milder. The focus now is on whether Sterling can stabilize in the coming days or if further downside looms. Aussie is also underperforming, ranking as the second weakest currency this week after Sterling, while Loonie is the third weakest. Conversely, Euro is maintaining its position as the week’s strongest performer, bolstered by better-than-expected GDP growth and inflation data. These robust figures have reduced the urgency for ECB to accelerate its rate-cutting cycle, allowing for a steadier monetary policy approach. Swiss Franc is the second strongest currency, benefiting from safe-haven flows and buying interest against Sterling. Kiwi dollar ranks third in strength, supported by the selloff in Aussie, which sometimes affects investor sentiment toward its regional counterpart. Dollar and Yen are trading in mixed fashion, occupying middle positions among major currencies. Market are now turning their attention to today's non-farm payroll report in the US, which could influence the greenback's short-term direction. However, the medium-term trend for Dollar is to be shaped by the upcoming presidential election next week.... |
GBP/USD Daily Outlook Daily Pivots: (S1) 1.2830; (P) 1.2915; (R1) 1.2984; More... GBP/USD's decline from 1.3433 resumed by breaking through 1.2906 temporary low. Intraday bias is back on the downside for 61.8% retracement of 1.2298 to 1.3433 at 1.2732. Sustained break there will pave the way back to 1.2298 key support level next. On the upside, break of 1.3042 resistance is needed to indicate short term bottoming. Otherwise, outlook will remain bearish in case of recovery. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
|---|
| 21:45 | NZD | Building Permits M/M Sep | 2.60% | -5.30% | -5.20% | | 00:30 | AUD | PPI Q/Q Q3 | 0.90% | 0.70% | 1.00% | | 00:30 | AUD | PPI Y/Y Q3 | 3.90% | 4.80% | | 00:30 | JPY | Manufacturing PMI Oct F | 49.2 | 49 | 49 | | 01:45 | CNY | Caixin Manufacturing PMI Oct | 50.3 | 49.5 | 49.3 | | 07:30 | CHF | Real Retail Sales Y/Y Sep | 2.50% | 3.20% | | 07:30 | CHF | CPI M/M Oct | 0.00% | -0.30% | | 07:30 | CHF | CPI Y/Y Oct | 0.80% | 0.80% | | 08:30 | CHF | Manufacturing PMI Oct | 49.5 | 49.9 | | 09:30 | GBP | Manufacturing PMI Oct F | 50.3 | 50.3 | | 12:30 | USD | Nonfarm Payrolls Oct | 106K | 254K | | 12:30 | USD | Unemployment Rate Oct | 4.10% | 4.10% | | 12:30 | USD | Average Hourly Earnings M/M Oct | 0.30% | 0.40% | | 13:30 | CAD | Manufacturing PMI Oct | 50.4 | | 13:45 | USD | Manufacturing PMI Oct F | 47.8 | 47.8 | | 14:00 | USD | ISM Manufacturing PMI Oct | 47.6 | 47.2 | | 14:00 | USD | ISM Manufacturing Prices Paid Oct | 48.3 | | 14:00 | USD | ISM Manufacturing Employment Index Oct | 43.9 | | 14:00 | USD | Construction Spending M/M Sep | 0.00% | -0.10% |
|
|
|
