Dollar Recovers as US Stock Rally Stalls, Import Prices Pose Challenge
| Action Insight Mid-Day Report 5-16-24 |
Dollar Recovers as US Stock Rally Stalls, Import Prices Pose Challenge |
The strong rally in US stocks seen yesterday appears to lack follow-through momentum, with futures indicating a flat open today. The benchmark 10-year yield is fluctuating within a tight range, and Dollar is broadly recovering as selling momentum wanes. The strong increase in import prices serves as a reminder that, although disinflation in the US is making progress again, the journey will be "bumpy", as many Fed officials have emphasized. Despite today's recovery, Dollar remains the worst performer of the week, followed by Swiss Franc and Canadian Dollar. New Zealand Dollar continues to lead the pack, followed by British Pound and Australian Dollar. Euro and Japanese Yen are in the middle, although the Yen is showing signs of weakening again today... |
USD/CHF Mid-Day Outlook Daily Pivots: (S1) 0.9001; (P) 0.9036; (R1) 0.9057; More.... Intraday bias in USD/CHF is turned neutral again first with current recovery. But further decline is expected as long as 0.9101 resistance holds. Break of 0.8987 will resume the whole fall from 0.9223 and target 38.2% retracement of 0.8332 to 0.9223 at 0.8883 next. However, break of 0.9101 will turn bias back to the upside for stronger rebound. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
|---|
| 23:50 | JPY | GDP Q/Q Q1 P | -0.50% | -0.40% | 0.10% | | 23:50 | JPY | GDP Deflator Y/Y Q1 P | 3.60% | 3.30% | 3.90% | | 01:30 | AUD | Employment Change Apr | 38.5K | 25.3K | -6.6K | | 01:30 | AUD | Unemployment Rate Apr | 4.10% | 3.90% | 3.80% | 3.90% | | 04:30 | JPY | Industrial Production M/M Mar F | 4.40% | 3.40% | 3.80% | | 09:00 | EUR | Italy Trade Balance (EUR) Mar | 4.34B | 4.77B | 6.03B | | 12:30 | USD | Initial Jobless Claims (May 10) | 222K | 219K | 231K | 232K | | 12:30 | USD | Building Permits Apr | 1.44M | 1.48M | 1.46M | 1.49M | | 12:30 | USD | Housing Starts Apr | 1.36M | 1.43M | 1.32M | 1.29M | | 12:30 | USD | Import Price Index Y/Y Apr | 0.90% | 0.20% | 0.40% | | 12:30 | USD | Philadelphia Fed Survey May | 4.5 | 7.7 | 15.5 | | 13:15 | USD | Industrial Production M/M Apr | 0.20% | 0.40% | | 13:15 | USD | Capacity Utilization Apr | 78.40% | 78.40% | | 14:30 | USD | Natural Gas Storage | 76B | 79B |
|
|
|
