Dollar and Yen Firmer on Recession Talks
| Action Insight Daily Report 8-16-22 |
Dollar and Yen Firmer on Recession Talks |
Yen and Dollar are so far stronger for the week, with recession as a main theme in the markets. Yet, their upside is relatively limited, as US stocks managed to extend near term rally overnight. Commodity currencies are generally on the softer side, but Aussie, Kiwi and Loonie are all staying inside last week's ranges. Euro and Sterling are mixed for now, while Swiss Franc is firm. Technically, EUR/USD's break of 1.0201 minor support argues that rebound from 0.9951 has already completed at 1.0368. Deeper fall is in favor back to retest 0.9951 low. Some attention will also be on Gold, which lost much upside momentum after hitting 1807.66. Break of 1764.77 support will also argue that rebound from 1680.83 has completed, and bring retest of this low. Developments in EUR/USD and Gold could reinforce each other. In Asia, Nikkei dropped -0.01%. Hong Kong HSI is down -0.99%. China Shanghai SSE is up 0.12%. Singapore Strait Times is down -0.18%. Japan 10-year JGB yield is down -0.016 at 0.171. Overnight, DOW rose 0.45%. S&P 50 rose 0.40%. NASDAQ rose 0.62%. 10-year yield dropped -0.058 to 2.791. |
EUR/USD Daily Outlook Daily Pivots: (S1) 1.0120; (P) 1.0194; (R1) 1.0233; More... EUR/USD's break of 1.0201 minor support suggests that rebound from 0.9951 has completed at 1.0368 already. That came after rejection by 55 day EMA, as well as falling channel resistance. Intraday bias is back on the downside for retesting 0.9951 low. Firm break there will resume larger down trend. For now, risk will stay on the downside as long as 1.0368 resistance holds, in case of recovery. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 01:30 | AUD | RBA Meeting Minutes | | 04:30 | JPY | Tertiary Industry Index M/M Jun | -0.20% | 0.50% | 0.80% | 1.10% | | 06:00 | GBP | Claimant Count Change Jul | -10.5K | -32.0K | -20.0K | -26.8K | | 06:00 | GBP | ILO Unemployment Rate (3M) Jun | 3.80% | 3.80% | 3.80% | | 06:00 | GBP | Average Earnings Excluding Bonus 3M/Y Jun | 4.70% | 4.40% | 4.30% | | 06:00 | GBP | Average Earnings Including Bonus 3M/Y Jun | 5.10% | 5.20% | 6.20% | | 09:00 | EUR | Eurozone Trade Balance (EUR) Jun | -20.0B | -26.0B | | 09:00 | EUR | Germany ZEW Economic Sentiment Aug | -59.9 | -53.8 | | 09:00 | EUR | Germany ZEW Current Situation Aug | -48 | -45.8 | | 09:00 | EUR | Eurozone ZEW Economic Sentiment Aug | -57 | -51.1 | | 12:15 | CAD | Housing Starts Jul | 265K | 274K | | 12:30 | CAD | CPI M/M Jul | 0.10% | 0.70% | | 12:30 | CAD | CPI Y/Y Jul | 7.60% | 8.10% | | 12:30 | CAD | CPI Common Y/Y Jul | 4.70% | 4.60% | | 12:30 | CAD | CPI Median Y/Y Jul | 4.90% | 4.90% | | 12:30 | CAD | CPI Trimmed Y/Y Jul | 5.40% | 5.50% | | 12:30 | USD | Building Permits Jul | 1.65M | 1.70M | | 12:30 | USD | Housing Starts Jul | 1.35M | 1.56M | | 13:15 | USD | Industrial Production M/M Jul | 0.20% | -0.20% | | 13:15 | USD | Capacity Utilization Jul | 80.10% | 80.00% |
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