Sterling a Touch Firmer after Sunak Becomes Third UK PM in Two Months
| Action Insight Mid-Day Report 10-25-22 |
Sterling a Touch Firmer after Sunak Becomes Third UK PM in Two Months |
It's an extremely slow day in the markets. Sterling appears to be a touch stronger after Rishi Sunak finally become the third UK Prime Minister in Two months, accepting King Charles's request to form a government. Meanwhile, Swiss Franc is slightly on the softer side. But overall, most major crosses and pairs are staying range bound. Germany Ifo Business Climate triggered no reaction in Euro. The stock markets are mixed too, with China markets closed slightly slower despite attempt by the "national team" to buy a rebound. Benchmark treasury yields in the US and Europe are also trading lower. Technically, EUR/CHF's rally today is so far not accompanied by any meaning movement in Euro elsewhere. Now, GBP/CHF appears to be trying to resume near term rise from 1.0183. Firm break of 1.1393 resistance will confirm and target 61.8% projection of 1.0183 to 1.1283 from 1.0893 at 1.1573. Let's see whether the Pound would move elsewhere or not. In Europe, at the time of writing, FTSE is down-0.83%. DAX is down -0.96%. CAC is up 0.17%. Germany 10-year yield is down -0.0989 at 2.231. Earlier in Asia, Nikkei rose 1.02%. Hong Kong HSI dropped -0.10%. China Shanghai SSE dropped -0.04%. Singapore Strait Times rose 0.48%. Japan 10-year JGB yield rose 0.0004 to 0.257. |
GBP/USD Mid-Day Outlook Daily Pivots: (S1) 1.1222; (P) 1.1316; (R1) 1.1373; More... GBP/USD rises mildly today but stays inside range of 1.0922/1494. Intraday bias remains neutral for the moment. Further rally is in favor with 1.0922 minor support intact. On the upside, break of 1.1494 will resume the rise from 1.0351 to 61.8% projection of 1.0351 to 1.1494 from 1.0922 at 1.1628. On the downside, below 1.0922 will turn bias back to the downside for 1.0351 low instead. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 08:00 | EUR | Germany IFO Business Climate Oct | 84.3 | 84 | 84.3 | 84.4 | | 08:00 | EUR | Germany IFO Current Assessment Oct | 94.1 | 92.5 | 94.5 | | 08:00 | EUR | Germany IFO Expectations Oct | 75.6 | 74.9 | 75.2 | 75.3 | | 13:00 | USD | S&P/Case-Shiller Home Price Indices Y/Y Aug | 13.10% | 15.40% | 16.10% | 16.00% | | 13:00 | USD | Housing Price Index M/M Aug | -0.70% | -0.70% | -0.60% | | 14:00 | USD | Consumer Confidence Oct | 105.6 | 108 |
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