Dollar Selloff Continues, Euro Ready for Upside Breakout
| Action Insight Mid-Day Report 1-9-23 |
Dollar Selloff Continues, Euro Ready for Upside Breakout |
Selloff in Dollar remains the main theme today, but Yen is also sharing some burden. US 10-year yield is falling below 3.6 handle again, giving the greenback some additional pressure. Swiss Franc breaks through recent resistance against Dollar already, with help from cross buying. But Euro might also follow very soon. For now, Aussie and Kiwi are still the strongest ones, with Loonie lagging behind. Technically, EUR/USD could break through 1.0733 resistance during the rest of the session. In that case, whole rally from 0.9534 low should resume. Next target would be channel resistance (now at 1.0905). Reaction from there would decide whether upside acceleration would follow to 61.8% projection of 0.9630 to 1.0733 from 1.0482 at 1.1164. In Europe, at the time of writing, FTSE is up 0.04%. DAX is up 0.86%. CAC is up 0.42%. Germany 10-year yield is up 0.0656 at 2.277. Earlier in Asia, Hong Kong HSI rose 1.89%. China Shanghai SSE rose 0.58%. Singapore Strait Times rose 0.88%. Japan was on holiday. |
USD/CHF Mid-Day Outlook Daily Pivots: (S1) 0.9228; (P) 0.9319; (R1) 0.9368; More... USD/CHF's down trend resumed by breaking through 0.9199 support. Intraday bias is back on the downside. Next target is 100% projection of 0.9545 to 0.9199 from 0.9407 at 0.9061. On the upside, break of 0.9407 resistance is needed to indicate short term bottoming. Otherwise, outlook will stay bearish in case of recovery. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 00:30 | AUD | Building Permits M/M Nov | -9.00% | 0.10% | -6.00% | | 06:45 | CHF | Unemployment Rate Dec | 1.90% | 2.10% | 2.00% | | 07:00 | EUR | Germany Industrial Production M/M Nov | 0.20% | 0.20% | -0.10% | | 07:45 | EUR | France Trade Balance (EUR) Nov | -13.8B | -11.3B | -12.2B | -11.6B | | 08:00 | CHF | Foreign Currency Reserves (CHF) Dec | 784B | 790B | | 09:00 | EUR | Italy Unemployment Nov | 7.80% | 7.80% | 7.80% | | 09:30 | EUR | Eurozone Sentix Investor Confidence (Jan) | -17.5 | -17 | -21 | | 10:00 | EUR | Unemployment Rate Nov | 6.50% | 6.50% | 6.50% | | 13:30 | CAD | Building Permits M/M Nov | 14.10% | 0.40% | -1.40% |
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