Focus Turns to UK GDP and Canada Employment for Direction
| Action Insight Daily Report 2-10-23 |
Focus Turns to UK GDP and Canada Employment for Direction |
The markets are overall staying in directionless mode for now. Dollar's selloff overnight didn't last, as risk rally faded quickly. The greenback in actually the strongest one in Asian session, while Aussie and Kiwi are the weakest, indicating some risk aversion. As for the week, Sterling is so far the best performer, followed by Swiss Franc while Euro is the worst, followed by Canadian. Risk sentiment will continue to be the main driver overall, if investors could made up their mind. GBP/CAD is a pair to watch today given that UK GDP and Canada employment data are featured. Technically, it's possible that the corrective pattern from 1.6846 has completed with three waves to 1.6075. Sustained trading above 4 hour 55 EMA (now at 1.6294) will affirm this case and bring stronger rise back to 1.6690/6846 resistance first. Nevertheless, rejection by 4 hour 55 EMA will open up another fall to 1.6075 and below, before the corrective pattern completes. In Asia, at the time of writing, Nikkei is up 0.23%. Hong Kong HSI is down -2.01%. China Shanghai SSE is down -0.56%. Singapore Strait Times is down -0.23%. Japan 10-year JGB yield is up 0.001 at 0.499. Overnight, DOW dropped -0.73%. S&P 500 dropped -0.88%. NASDAQ dropped -1.02%. 10-year yield rose 0.030 to 3.683. |
GBP/USD Daily Outlook Daily Pivots: (S1) 1.2052; (P) 1.2123; (R1) 1.2189; More... Despite recovering to 1.2192, GBP/USD failed to sustain above 4 hour 55 EMA and retreated. Intraday bias is turned neutral again. On the upside, break of 1.2192 will affirm the case that corrective pattern from 1.2445 has completed with three waves to 1.1960. Further rise would be seen back to 1.2445/6. Decisive break there will resume larger rise from 1.0351. On the downside, through break of 1.1960 will extend the corrective pattern with another fall to 1.1840 support and possibly below. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 23:50 | JPY | PPI Y/Y Jan | 9.50% | 11.20% | 10.20% | 10.50% | | 00:30 | AUD | RBA Monetary Policy Statement | | 01:30 | CNY | CPI Y/Y Jan | 2.10% | 2.30% | 1.80% | | 01:30 | CNY | PPI Y/Y Jan | -0.80% | -0.50% | -0.70% | | 06:00 | JPY | Machine Tool Orders Y/Y Jan P | 1.00% | | 07:00 | GBP | GDP M/M Dec | -0.30% | 0.10% | | 07:00 | GBP | GDP Q/Q Q4 P | 0.00% | -0.30% | | 07:00 | GBP | Industrial Production M/M Dec | -0.20% | -0.20% | | 07:00 | GBP | Industrial Production Y/Y Dec | -5.30% | -5.10% | | 07:00 | GBP | Manufacturing Production M/M Dec | -0.20% | -0.50% | | 07:00 | GBP | Manufacturing Production Y/Y Dec | -6.10% | -5.90% | | 07:00 | GBP | Goods Trade Balance (GBP) Dec | -17.2B | -15.6B | | 09:00 | EUR | Italy Industrial Output M/M Dec | 0.10% | -0.30% | | 12:00 | GBP | NIESR GDP Estimate (3M) Jan | 0.10% | | 13:30 | CAD | Net Change in Employment Jan | 15.0K | 104K | | 13:30 | CAD | Unemployment Rate Jan | 5.00% | 5.00% | | 15:00 | USD | Michigan Consumer Sentiment Index Feb P | 65 | 64.9 |
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