Dollar Strengthens as DOW Plunges; Yen Struggles to Extend Rally
| Action Insight Daily Report 7-19-24 |
Dollar Strengthens as DOW Plunges; Yen Struggles to Extend Rally |
Dollar rebounded broadly overnight following steep 500+ point selloff in DOW. Some analysts cited rotation away from big tech as the cause, but the decline was broad-based. Profit-taking could be a more likely factor after recent record runs, as traders and Fed policymakers await more data to determine the number of rate cuts needed this year. Yen is struggling to extend near-term gains after slightly lower-than-expected core CPI data. Although inflation has accelerated, it is not strong enough to warrant a rate hike by BoJ later this month. The government's new forecasts suggest that Yen will average around 158.8 against Dollar. This argues that USD/JPY could be allowed to fluctuate around 159 without triggering intervention from Japanese authorities. For the week, Swiss Franc remains the strongest performer, followed by Yen and then Dollar. New Zealand Dollar is staying as the weakest, followed by Australian Dollar and then Canadian Dollar. Euro and the pound continue to struggle in the middle... |
USD/CAD Daily Outlook Daily Pivots: (S1) 1.3678; (P) 1.3698; (R1) 1.3727; More... USD/CAD's rebound from 1.3588 resumed by breaking 1.3707 temporary top and intraday bias back on the upside. Outlook is unchanged that corrective pattern from 1.3845 might have completed with three waves to 1.3588, after hitting 38.2% retracement of 1.3716 to 1.3845 at 1.3589 twice. Further rise is expected to 1.3790 resistance first. Break there will larger rise from 1.3716 is ready to resume through 1.3845. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 23:01 | GBP | GfK Consumer Confidence Jul | -13 | -11 | -14 | | 23:30 | JPY | National CPI Y/Y Jun | 2.80% | 2.80% | | 23:30 | JPY | National CPI Core Y/Y Jun | 2.60% | 2.70% | 2.50% | | 23:30 | JPY | National CPI Core-Core Y/Y Jun | 2.20% | 2.10% | | 06:00 | GBP | Retail Sales M/M Jun | -0.60% | 2.90% | | 06:00 | EUR | Germany PPI M/M Jun | 0.10% | 0.00% | | 06:00 | EUR | Germany PPI Y/Y Jun | -1.60% | -2.20% | | 06:00 | GBP | Public Sector Net Borrowing (GBP) Jun | 12.0B | 14.1B | | 08:00 | EUR | Eurozone Current Account (EUR) May | 34.6B | 38.6B | | 12:30 | CAD | Industrial Product Price M/M Jun | 0.20% | 0.00% | | 12:30 | CAD | Raw Material Price Index Jun | -0.70% | -1.00% | | 12:30 | CAD | Retail Sales M/M May | -0.20% | 0.70% | | 12:30 | CAD | Retail Sales ex Autos M/M May | 1.20% | 1.80% |
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