Sterling Rises Broadly, Shrugging Weak PMI Data
| Action Insight Mid-Day Report 11-23-22 |
Sterling Rises Broadly, Shrugging Weak PMI Data |
Sterling surges broadly today, shrugging off PMI data which indicates extended weakness in the economy. It's even over-powering New Zealand Dollar, which was lifted by RBNZ's jumbo rate hike. On the other hand, selling is focusing on Dollar, Canadian and Australia, while Yen is also on the weak side. Euro is mixed, and it's clearly lagging behind both the Pound and Swiss Franc. Technically, GBP/CAD is extending the rise from 1.4069 low, and further rally is expected as long as 1.5811 resistance turned support holds. Next target is 61.8% projection of 1.4069 to 1.5811 from 1.5167 at 1.6244. Decisive break there could prompt upside acceleration to 100% projection at 1.6909, and solidify the momentum for a medium term up trend, rather than a corrective rebound. In Europe, at the time of writing, FTSE is up 0.06%. DAX is down -0.31%. CAC is down -0.12%. Germany 10-year yield is down -0.003 at 1.982. Earlier in Asia, Japan was on holiday, Hong Kong HSI rose 0.57%. China Shanghai SSE rose 0.26% Singapore Strait Times dropped -0.11%. |
GBP/USD Mid-Day Outlook Daily Pivots: (S1) 1.1834; (P) 1.1869; (R1) 1.1919; More... GBP/USD rises notably today but stays below 1.2028 resistance. Intraday bias remains neutral first. But overall, further rally is expected as long as 1.1644 resistance turned support holds. On the upside, break of 1.2028 will resume whole rise from 1.0351 to 100% projection of 1.0351 to 1.1494 from 1.1145 at 1.2288. However, sustained break of 1.1644 will bring deeper fall to 1.1145 support instead. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 22:00 | AUD | Manufacturing PMI Nov P | 51.5 | 52.7 | | 22:00 | AUD | Services PMI Nov P | 47.2 | 49.3 | | 01:00 | NZD | RBNZ Rate Decision | 4.25% | 4.25% | 3.50% | | 08:15 | EUR | France Manufacturing PMI Nov P | 49.1 | 47 | 47.2 | | 08:15 | EUR | France Services PMI Nov P | 49.4 | 50.6 | 51.7 | | 08:30 | EUR | Germany Manufacturing PMI Nov P | 46.7 | 45.2 | 45.1 | | 08:30 | EUR | Germany Services PMI Nov P | 46.4 | 46.4 | 46.5 | | 09:00 | EUR | Eurozone Manufacturing PMI Nov P | 47.3 | 46.5 | 46.4 | | 09:00 | EUR | Eurozone Services PMI Nov P | 48.6 | 48.4 | 48.6 | | 09:30 | GBP | Manufacturing PMI Nov P | 46.2 | 45.6 | 46.2 | | 09:30 | GBP | Services PMI Nov P | 48.8 | 48 | 48.8 | | 13:30 | USD | Initial Jobless Claims (Nov 18) | 240K | 224K | 222K | 223K | | 13:30 | USD | Durable Goods Orders Oct | 1.00% | 0.40% | 0.40% | 0.30% | | 13:30 | USD | Durable Goods Orders ex Transportation Oct | 0.50% | 0.10% | -0.50% | -0.90% | | 14:45 | USD | Manufacturing PMI Nov P | 49.8 | 50.4 | | 14:45 | USD | Services PMI Nov P | 47.7 | 47.8 | | 15:00 | USD | Michigan Consumer Sentiment Nov F | 54.7 | 54.7 | | 15:00 | USD | New Home Sales Oct | 575K | 603K | | 15:30 | USD | Crude Oil Inventories | -2.6M | -5.4M | | 17:00 | USD | Natural Gas Storage | 86B | 64B | | 19:00 | USD | FOMC Meeting Minutes |
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