Dollar Selling Takes Off, EUR/USD Back Above Parity
| Action Insight Mid-Day Report 10-26-22 |
Dollar Selling Takes Off, EUR/USD Back Above Parity |
Dollar's decline takes off today on talks that poor economic data would prompt Fed to slow down the tightening pace sooner than earlier expected. Treasury yields also tumbled, adding some more weight to the greenback. Yet, it should be noted that inflation remains Fed's biggest worry. There is little room for a pause if inflation plateaus at a high level. As for today, Australian Dollar is the strongest one, followed by Sterling, and Kiwi. Euro is back above pairty against the greenback. Swiss Franc is second worst, following Dollar, followed by Loonie. Canadian Dollar will look to BoC rate hike for some support. Technically, current decline in 10-year yield is seen as a near term retreat for now. As long as 3.992 resistance turned support holds, things are disastrous. Another rally through 4.333 is expected and that would give the greenback a lift when happens. Nevertheless, considering bearish divergence condition in daily MACD, firm break of 3.992 would indicate that a larger correction is underway towards 55 day EMA (now at 3.614). But that might not happen before rate hike and statement next week. In Europe, at the time of writing, FTSE is down -0.67%. DAX is up 0.06%. CAC is down -0.32%. Germany 10-year yield is up 0.006 at 2.181. Earlier in Asia, Nikkei rose 0.67%. Hong Kong HSI rose 1.00%. China Shanghai SSE rose 0.78%. Singapore Strait Times rose 0.81%. Japan 10-year JGB yield dropped -0.001 to 0.258. |
EUR/USD Mid-Day Outlook Daily Pivots: (S1) 0.9886; (P) 0.9932; (R1) 1.0013; More... EUR/USD's rebound from 0.9534 resumed by breaking through 0.9988 resistance. The development also came with strong break of the medium term falling channel resistance, as well ass 55 day EMA. A medium term bottom could be in place already, on bullish convergence condition in daily MACD. Intraday bias is now on the upside for 38.2% retracement of 1.1494 to 0.9534 at 1.0283. On the downside, break of 0.9847 minor support will turn intraday bias neutral first. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
|---|
| 23:50 | JPY | Corporate Service Price Index Y/Y Sep | 2.10% | 1.80% | 1.90% | 2.00% | | 00:00 | NZD | ANZ Business Confidence Oct | -42.7 | -36.7 | | 00:30 | AUD | CPI Q/Q Q3 | 1.80% | 1.50% | 1.80% | | 00:30 | AUD | CPI Y/Y Q3 | 7.30% | 6.90% | 6.10% | | 00:30 | AUD | RBA Trimmed Mean CPI Q/Q Q3 | 1.80% | 1.50% | 1.50% | 1.60% | | 00:30 | AUD | RBA Trimmed Mean CPI Y/Y Q3 | 6.10% | 5.60% | 4.90% | | 08:00 | CHF | Credit Suisse Economic Expectations Oct | -53.1 | -69.2 | | 08:00 | EUR | Eurozone M3 Money Supply Y/Y Sep | 6.30% | 6.10% | 6.10% | | 12:30 | USD | Goods Trade Balance (USD) Sep P | -92.2B | -87.8B | -87.3B | | 12:30 | USD | Wholesale Inventories Sep P | 0.80% | 1.30% | 1.30% | | 14:00 | USD | New Home Sales Sep | 590K | 685K | | 14:00 | CAD | BoC Interest Rate Decision | 4.00% | 3.25% | | 14:30 | USD | Crude Oil Inventories | -0.3M | -1.7M | | 15:00 | CAD | BoC Press Conference |
|
|
|
