Gold Struggles Below 2000, Euro Shrugs German Ifo
| Action Insight Mid-Day Report 3-27-23 |
Gold Struggles Below 2000, Euro Shrugs German Ifo |
The financial markets are sending mixed messages today, with risk sentiment seemingly improving as European indexes and US futures trade higher. US and German 10-year yields are also recovering. However, the currency markets paint a different picture, with Swiss Franc leading as the best performer, followed by Canadian Dollar and Sterling. In contrast, Yen is the worst, trailed by New Zealand and US Dollars. Euro is mixed, disregarding the improved German business climate. Trading could stay subdued due to an empty US economic calendar. From a technical perspective, Gold's performance may hint at the direction of risk sentiment. Today's decline suggests another rejection by 2000 handle. For now, further gains are anticipated as long as 1934.07 support level holds, potentially pushing through 2009.59 to resume the larger uptrend. However, decisive break below 1934.07 would indicate a deeper pullback is underway, possibly coinciding with a further recovery in risk markets. In Europe, at the time of writing, FTSE is up 1.05%. DAX is up 1.35%. CAC is up 1.14%. Germany 10-year yield is up 0.124 at 2.253. Earlier in Asia, Nikkei rose 0.33%. Hong Kong HSI dropped -1.75%. China Shanghai SSE dropped -0.44%. Singapore Strait Times rose 0.82%. Japan 10-year JGB yield rose 0.0189 to 0.295. |
EUR/USD Mid-Day Outlook Daily Pivots: (S1) 1.0702; (P) 1.0771; (R1) 1.0828; More... EUR/USD is gyrating in tight range today and intraday bias remains neutral. Strong rebound from current level, followed by break of 1.0929 will reaffirm near term bullishness, and extend the rise from to retest 1.1032 high. Firm break there will resume larger up trend from 0.9534 to 1.1273 fibonacci level next. However, sustained trading below 4 hour 55 EMA (now at 1.0742) will likely extend the corrective pattern from 1.1032 and bring deeper decline back towards 1.0515. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 23:50 | JPY | Corporate Service Price Index Y/Y Feb | 1.80% | 1.80% | 1.60% | | 08:00 | EUR | Germany IFO Business Climate Mar | 93.3 | 92 | 91.1 | | 08:00 | EUR | Germany IFO Current Assessment Mar | 95.4 | 94 | 93.9 | | 08:00 | EUR | Germany IFO Expectations Mar | 91.2 | 87.4 | 88.5 | 88.4 | | 08:00 | EUR | Eurozone M3 Money Supply Y/Y Feb | 2.90% | 3.30% | 3.50% |
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