Dollar Spikes on Strong PPI Data, Reverses as Bears Maintain Control
| Action Insight Mid-Day Report 5-14-24 |
Dollar Spikes on Strong PPI Data, Reverses as Bears Maintain Control |
Dollar spiked higher after US PPI reported stronger-than-expected monthly rise. However, this upward movement was quickly reversed within minutes, indicating that bearish sentiment continues to dominate the greenback. The key question now is whether Dollar will see downside breakouts before tomorrow's crucial CPI release. Sterling's movements have also been indecisive. The Pound initially recovered following stronger-than-expected UK wage growth data but upside was capped by a rise in unemployment rate. It softened again after BoE Chief Economist Huw Pill affirmed that a summer rate cut is "not unreasonable." Despite these fluctuations, Sterling remains within yesterday's range, except against Yen... |
EUR/USD Mid-Day Outlook Daily Pivots: (S1) 1.0768; (P) 1.0788; (R1) 1.0809; More... EUR/USD is still staying in range below 1.0810 and intraday bias remains neutral at this point. Further rally is in favor as long as 1.0723 minor support holds. On the upside, break of 1.0810 will resume the rebound from 1.0601 to 1.0884 resistance next. However, firm break of 1.0723 will argue that the rebound has completed, and turn bias to the downside for 1.0648 support instead. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 23:50 | JPY | PPI Y/Y Apr | 0.90% | 0.90% | 0.80% | 0.90% | | 06:00 | JPY | Machine Tool Orders Y/Y Apr | -11.60% | -3.80% | | 06:00 | EUR | Germany CPI M/M Apr F | 0.50% | 0.50% | 0.50% | | 06:00 | EUR | Germany CPI Y/Y Apr F | 2.20% | 2.20% | 2.20% | | 06:00 | GBP | Claimant Count Change Apr | 8.9K | 13.9K | 10.9K | -2.4K | | 06:00 | GBP | ILO Unemployment Rate (3M) Mar | 4.30% | 4.30% | 4.20% | | 06:00 | GBP | Average Earnings Including Bonus 3M/Y Mar | 5.70% | 5.30% | 5.60% | 5.70% | | 06:00 | GBP | Average Earnings Excluding Bonus 3M/Y Mar | 6.00% | 6.00% | | 06:30 | CHF | Producer and Import Prices M/M Apr | 0.60% | 0.20% | 0.10% | | 06:30 | CHF | Producer and Import Prices Y/Y Apr | -1.80% | -2.10% | | 09:00 | EUR | Germany ZEW Economic Sentiment May | 47.1 | 44.9 | 42.9 | | 09:00 | EUR | Germany ZEW Current Situation May | -72.3 | -75 | -79.2 | | 09:00 | EUR | Eurozone ZEW Economic Sentiment May | 47 | 46.1 | 43.9 | | 10:00 | USD | NFIB Business Optimism Index Apr | 89.7 | 88.1 | 88.5 | | 12:30 | USD | PPI M/M Apr | 0.50% | 0.20% | 0.20% | -0.10% | | 12:30 | USD | PPI Y/Y Apr | 2.20% | 2.20% | 2.10% | 1.80% | | 12:30 | USD | PPI Core M/M Apr | 0.50% | 0.20% | 0.20% | -0.10% | | 12:30 | USD | PPI Core Y/Y Apr | 2.40% | 2.40% | 2.40% | | 12:30 | CAD | Wholesale Sales M/M Mar | -1.10% | -0.90% | 0.00% | 0.20% |
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