Dollar Mixed with Inflation Data on Deck; Sterling Maintains Lead
| Action Insight Daily Report 7-11-24 |
Dollar Mixed with Inflation Data on Deck; Sterling Maintains Lead |
Dollar weakened notably against Sterling and Aussie overnight, but held steady against other currencies. Market focus is now on the upcoming US consumer inflation data, with expectations of a slowdown in the headline CPI and steady core CPI. Fed Chair Jerome Powell's testimony this week boosted risk sentiment, driving US stocks to record highs. However, the bullish market trend faces a crucial test with today's inflation data. It's clear that Fed remains cautious about prematurely cutting rates to guard against inflation resurgence. Sterling has emerged as the strongest performer this week, propelled by comments from BoE Chief Economist Huw Pill. Pill warned of "uncomfortable strength" in underlying inflation, signaling that an August rate cut is far from certain. The Monetary Policy Committee's decisions will still hinge heavily on upcoming data. Elsewhere in the currency markets, Canadian dollar is the second strongest this week so far. Australian Dollar follows as the third strongest, supported by a healthy risk appetite among investors. In contrast, New Zealand dollar remains the weakest, impacted by RBNZ's dovish stance. Yen is the second weakest, continuing its inverse correlation with Nikkei, which has soared past 42k to new record highs. Swiss franc is the third weakest, facing additional pressure from reversals against other European majors, while Euro and Dollar are positioned in the middle... |
AUD/USD Daily Report Daily Pivots: (S1) 0.6735; (P) 0.6744; (R1) 0.6755; More... Intraday bias in AUD/USD is back on the upside with breach of 0.6760 temporary top. Rise from 0.6361 is resuming and should target 61.8% projection of 0.6361 to 0.6713 from 0.6619 at 0.6837. On the downside, however, break of 0.6723 minor support will turn bias back to the downside for deeper pullback. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 23:01 | GBP | RICS Housing Price Balance Jun | -17% | -14% | -17% | | 23:50 | JPY | Machinery Orders M/M May | -3.20% | 1.00% | -2.90% | | 01:00 | AUD | Consumer Inflation Expectations Jul | 4.30% | 4.40% | | 06:00 | EUR | Germany CPI M/M Jun F | 0.10% | 0.10% | | 06:00 | EUR | Germany CPI Y/Y Jun F | 2.20% | 2.20% | | 06:00 | GBP | GDP M/M May | 0.20% | 0.00% | | 06:00 | GBP | Industrial Production M/M May | 0.30% | -0.90% | | 06:00 | GBP | Industrial Production Y/Y May | 0.60% | -0.40% | | 06:00 | GBP | Manufacturing Production M/M May | 0.30% | -1.40% | | 06:00 | GBP | Manufacturing Production Y/Y May | 1.20% | 0.40% | | 06:00 | GBP | Goods Trade Balance (GBP) May | -16.1B | -19.6B | | 12:30 | USD | Initial Jobless Claims (Jul 5) | 239K | 238K | | 12:30 | USD | CPI M/M Jun | 0.10% | 0.00% | | 12:30 | USD | CPI Y/Y Jun | 3.10% | 3.30% | | 12:30 | USD | CPI Core M/M Jun | 0.20% | 0.20% | | 12:30 | USD | CPI Core Y/Y Jun | 3.40% | 3.40% | | 14:30 | USD | Natural Gas Storage | 56B | 32B |
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