Dollar Under Renewed Pressure Amid Signs of Cooling Job Market and Easing Price Pressures
| Action Insight Mid-Day Report 11-16-23 |
Dollar Under Renewed Pressure Amid Signs of Cooling Job Market and Easing Price Pressures |
Dollar is facing renewed selling pressure in the early US session, as fresh economic data points to a further cooling in the job market. A significant uptick in continuing jobless claims, reaching their highest level in nearly two years, suggests a softening labor environment. Adding to this, deeper-than-expected decline in import prices, influenced by both fuel and non-fuel components, indicates easing price pressures. Concurrently, Philadelphia Fed manufacturing survey underscores ongoing industry challenges, marking the 16th month of contraction in the last 18 months. These economic indicators collectively bolster the argument that Fed may have reached the end of its current tightening cycle. This perspective aligns with growing market sentiment that anticipates no more rate hike by Fed. Instead, loosening would probably start in the first half of next year. |
USD/JPY Mid-Day Outlook Daily Pivots: (S1) 150.49; (P) 150.95; (R1) 151.86; More... USD/JPY dips notably in early US session but stays well inside established range of 149.17/151.89. Intraday bias stays neutral for the moment. Further rally is in favor as long as 149.17 support holds. On the upside, decisive break of 151.93 resistance will confirm resumption of long term up trend. Next target will be 157.69 projection level. However, firm break of 149.17 will be a sign of bearish reversal and bring deeper fall to 147.28 support first. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 23:50 | JPY | Trade Balance (USD) Oct | -0.46T | -0.71T | -0.43T | | 23:50 | JPY | Machinery Orders M/M Sep | 1.40% | 0.90% | -0.50% | | 00:00 | AUD | Consumer Inflation Expectations Nov | 4.90% | 4.80% | | 00:30 | AUD | Employment Change Oct | 55.0K | 22.8K | 6.7K | | 00:30 | AUD | Unemployment Rate Oct | 3.70% | 3.70% | 3.60% | | 04:30 | JPY | Tertiary Industry Index M/M Sep | -1.00% | -0.10% | -0.10% | 0.70% | | 13:15 | CAD | Housing Starts Y/Y Oct | 275K | 255K | 270K | | 13:30 | USD | Initial Jobless Claims (Nov 10) | 231K | 222K | 217K | 218K | | 13:30 | USD | Import Price Index M/M Oct | -0.80% | -0.30% | 0.10% | 0.40% | | 13:30 | USD | Philadelphia Fed Manufacturing Survey Nov | -5.9 | -11 | -9 | | 14:15 | USD | Industrial Production M/M Oct | -0.40% | 0.30% | | 14:15 | USD | Capacity Utilization Oct | 79.40% | 79.70% | | 15:00 | USD | Natural Gas Storage |
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