Dollar Down as Substantial Majority of Fed Members Judged Slowing Hike Soon Appropriate
| Action Insight Daily Report 11-24-22 |
Dollar Down as Substantial Majority of Fed Members Judged Slowing Hike Soon Appropriate |
Dollar is sold off broadly after FOMC minutes indicated that a "substantial majority" of policymakers judged that slowing rate hike would "soon be appropriate". For now, New Zealand Dollar is the strongest for the week, supported by RBNZ's big rate hike. It's followed by Sterling, and then Swiss Franc. Canadian Dollar and Yen are lagging behind others in the rally against the greenback. Euro is also mixed only, dragged by selloff against other Europeans. Technically, GBP/USD's break of 1.2028 resistance confirms resumption of recent rally. Focuses are now on 1.0481 resistance in EUR/USD, 0.6796 resistance in AUD/USD, 0.9355 support in USD/CHF, and 137.66 support in USD/JPY. Break of these levels will confirm that broad-based selloff in Dollar is back. In Asia, at the time of writing, Nikkei is up 1.08%. Hong Kong HSI is up 0.43%. China Shanghai SSE is down -0.11%. Singapore Strait Times is down -0.13%. Japan 10-yaer JGB yield is up 0.0046 at 0.249. Overnight, DOW rose 0.28%. S&P 500 rose 0.59%. NASDAQ rose 0.99%. 10-year yield dropped -0.052 to 3.706. |
GBP/USD Daily Outlook Daily Pivots: (S1) 1.1925; (P) 1.2003; (R1) 1.2133; More... GBP/USD's rally from 1.0351 resumed by breaking through 1.2028 and intraday bias is back on the upside. Further rise should be seen to 100% projection of 1.0351 to 1.1494 from 1.1145 at 1.2288 first. Sustained break there will pave the way to 1.2759 medium term fibonacci level. For now, break of 1.1777 support is needed to indicate short term topping. Otherwise, outlook will remain bullish in case of retreat. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 00:30 | JPY | Manufacturing PMI Nov P | 49.4 | 50.7 | 50.7 | | 09:00 | EUR | Germany IFO Business Climate Nov | 85 | 84.3 | | 09:00 | EUR | Germany IFO Current Assessment Nov | 93.6 | 94.1 | | 09:00 | EUR | Germany IFO Expectations Nov | 77 | 75.6 | | 12:30 | EUR | ECB Monetary Policy Meeting Accounts |
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