GBP/CAD Pressing Key Cluster Resistance as Pound Extended Rebound
| Action Insight Daily Report 9-30-22 |
GBP/CAD Pressing Key Cluster Resistance as Pound Extended Rebound |
Sterling's rebound extended further overnight as sentiment towards it continued to stabilized. Indeed, the Pound is trading up against Aussie and Canadian for the month. Sterling looks set to have a strong close for the week too. Commodity currencies are generally pressured today, together with steep decline in Japan Nikkei. But there is little risk aversion support to Yen. Dollar is mixed for now, overwhelmed by the comeback of Euro too. Technically, GBP/CAD is now pressing an important cluster resistance. The levels include 1.5296 resistance, 55 day EMA (now at 1.5292), and 38.2% retracement of 1.7375 to 1.4069 at 1.5332. Rejection by this cluster resistance, followed by break of 1.4728 minor support, will argue that the rebound from 1.4069 has completed. That will also maintain medium term bearishness for down trend resumption through 1.4069 at a later stage. However, sustained break of this cluster should add to the case that the worst is over for the Pound, and open up stronger rise back to 61.8% retracement at 1.6112. We'll probably find out which way next week. In Asia, at the time of writing, Nikkei is down -2.26%. Hong Kong HSI is down -0.25%. China Shanghai SSE is down -0.32%. Singapore Strait Times is down -0.43%. Japan 10-year JGB yield is down -0.014 at 0.245. Overnight, DOW dropped -1.54%. S&P 500 dropped -2.11%. NASDAQ dropped -2.84%. 10-year yield rose 0.042 to 3.747. |
GBP/USD Daily Outlook Daily Pivots: (S1) 1.0881; (P) 1.1000; (R1) 1.1238; More... GBP/USD's rebound from 1.0351 extended higher today and the break of 4 hour 55 EMA (now at 1.1037) is a positive sign. For now, intraday bias is mildly on the upside for further rise to 61.8% retracement of 1.2292 to 1.0351 at 1.1551. On the downside, break of 1.0760 minor support will indicate that the rebound is over, and bring retest of 1.0351 low. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 22:45 | NZD | Building Permits M/M Aug | -1.60% | 5.00% | 4.90% | | 23:30 | JPY | Unemployment Rate Aug | 2.50% | 2.50% | 2.60% | | 23:50 | JPY | Industrial Production M/M Aug P | 2.70% | -0.20% | 0.80% | | 23:50 | JPY | Retail Trade Y/Y Aug | 4.10% | 2.80% | 2.40% | | 01:30 | AUD | Private Sector Credit M/M Aug | 0.80% | 0.80% | 0.70% | 0.80% | | 01:30 | CNY | NBS Manufacturing PMI Sep | 50.1 | 49.2 | 49.4 | | 01:30 | CNY | Non-Manufacturing PMI Sep | 50.6 | 52 | 52.6 | | 01:45 | CNY | Caixin Manufacturing PMI Sep | 48.1 | 49.9 | 49.5 | | 05:00 | JPY | Housing Starts Y/Y Aug | 4.60% | -4.10% | -5.40% | | 05:00 | JPY | Consumer Confidence Index Sep | 30.8 | 33.6 | 32.5 | | 06:00 | GBP | GDP Q/Q Q2 F | -0.10% | -0.10% | | 06:00 | GBP | Current Account (GBP) Q2 | -43.9B | -51.7B | | 06:30 | CHF | Real Retail Sales Y/Y Aug | 2.80% | 2.60% | | 06:45 | EUR | France Consumer Spending M/M Aug | 0.00% | -0.80% | | 07:00 | CHF | KOF Leading Indicator Sep | 86.2 | 86.5 | | 07:55 | EUR | Germany Unemployment Change Sep | 20K | 28K | | 07:55 | EUR | Germany Unemployment Rate Sep | 5.50% | 5.50% | | 08:00 | EUR | Italy Unemployment Aug | 7.90% | 7.90% | | 08:30 | GBP | Mortgage Approvals Aug | 63K | 64K | | 08:30 | GBP | M4 Money Supply M/M Aug | 0.50% | 0.50% | | 09:00 | EUR | Eurozone Unemployment Rate Aug | 6.60% | 6.60% | | 09:00 | EUR | Eurozone CPI Y/Y Sep P | 9.10% | 9.10% | | 09:00 | EUR | Eurozone CPI Core Y/Y Sep P | 4.70% | 4.30% | | 12:30 | USD | Personal Income M/M Aug | 0.30% | 0.20% | | 12:30 | USD | Personal Spending Aug | 0.20% | 0.10% | | 12:30 | USD | PCE Price Index M/M Aug | 0.30% | -0.10% | | 12:30 | USD | PCE Price Index Y/Y Aug | 6.60% | 6.30% | | 12:30 | USD | Core PCE Price Index M/M Aug | 0.10% | | 12:30 | USD | Core PCE Price Index Y/Y Aug | 5.20% | 4.60% | | 13:45 | USD | Chicago PMI Sep | 51.9 | 52.2 | | 14:00 | USD | Michigan Consumer Sentiment Index Sep F | 59.5 | 59.5 |
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