Sterling Tumbles Broadly While Dollar Turned Mixed
| Action Insight Mid-Day Report 2-7-23 |
Sterling Tumbles Broadly While Dollar Turned Mixed |
While Dollar is now the strongest one for the week, buying remains not too committed, except versus the weak Pound. The greenback is indeed mixed, awaiting more guidance from Fed Chair Jerome Powell's speech. Yen is currently the strongest one for today,. Australian Dollar is trailing as the impact of RBA's hawkish hike is fading quickly. Euro is following Sterling is the second weakest and both are pressured by selling against Swiss Franc. Technically, while USD/JPY retreats after hitting 132.89, further rally will remain in favor as long as 4 hour 55 EMA (now at 130.43). Current rise from 127.20 might just be a correction to the decline from 151.93 high. But even in such case, it should extend to 38.2% retracement of 151.93 to 127.20 at 136.64 before completion. In Europe, at the time of writing, FTSE is up 0.34%. DAX is down -0.35%. CAC is down 0.16%. Germany 10-year yield is up 0.032 at 2.329. Earlier in Asia, Nikkei dropped -0.03%. Hong Kong HSI rose 0.36%. China Shanghai SSE rose 0.29%. Singapore Strait Times dropped -0.15%. Japan 10-year JGB yield dropped -0.0047 to 0.495. |
GBP/USD Mid-Day Outlook Daily Pivots: (S1) 1.1993; (P) 1.2035; (R1) 1.2064; More... GBP/USD's fall from 1.2446 extends further to 1.1960 so far today. Intraday bias stays on the downside for 1.1840 support and possibly below. Nevertheless, such decline is seen as the third leg of the corrective pattern from 1.2445. Downside should be contained by 38.2% retracement of 1.0351 to 1.2445 at 1.1645 to bring rebound. On the upside, above 1.2076 minor resistance will turn intraday bias neutral first. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 23:30 | JPY | Labor Cash Earnings Y/Y Dec | 4.80% | 2.50% | 0.50% | 1.90% | | 23:30 | JPY | Household Spending Y/Y Dec | -1.30% | -0.20% | -1.20% | | 03:30 | AUD | RBA Rate Decision | 3.35% | 3.35% | 3.10% | | 00:30 | AUD | Trade Balance (AUD) Dec | 12.24B | 12.2B | 13.20B | 13.48B | | 05:00 | JPY | Leading Economic Index Dec P | 97.2 | 97.2 | 97.4 | | 06:45 | CHF | Unemployment Rate Jan | 1.90% | 1.90% | 1.90% | | 07:00 | EUR | Germany Industrial Production M/M Dec | -3.10% | -0.60% | 0.20% | | 07:45 | EUR | France Trade Balance (EUR) Dec | -14.9B | -12.2B | -13.8B | -13.6B | | 08:00 | CHF | Foreign Currency Reserves (CHF) Jan | 784B | 784B | | 13:30 | CAD | International Merchandise Trade (CAD) Dec | -0.2B | -0.6B | 0.0B | -0.2B | | 13:30 | USD | Trade Balance (USD) Dec | -67.4B | -68.5B | -61.5B | -61.0B |
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