Euro Dips Mildly after France and Germany Inflation, Risk Aversion Continues
| Action Insight Mid-Day Report 5-31-23 |
Euro Dips Mildly after France and Germany Inflation, Risk Aversion Continues |
Risk aversion is the main theme in the markets today, as selloff in stocks started in Asia following poor data from China, and continued through European session. Dollar and Yen are holding firm as the strongest ones for now. Euro traded a touch lower after lower than expected inflation readings in France and Germany, but downside is so far limited. European majors are still relatively supported by buying against commodity currencies. New Zealand and Australian Dollar are staying as the worst performers. Technically, development in EUR/AUD is worth a watch on whether selloff in Aussie would intensify. Break of 1.6514 temporary top will confirm resumption of whole rebound from 1.6134. This rally is either the second leg of the pattern from 1.6785, or resuming the larger up trend. But in either case, next target will be a test on 1.6785 high. In Europe, at the time of writing, FTSE is down -0.19%. DAX is down -0.48%. CAC is down -0.81%. Germany 10-year yield is down -0.042 at 2.293. Earlier in Asia, Nikkei dropped -1.41%. Hong Kong HSI dropped -1.94%. China Shanghai SSE dropped -0.61%. Singapore Strait Times dropped -0.90%. Japan 10-year JGB yield dropped -0.0037 to 0.433. |
EUR/USD Mid-Day Outlook Daily Pivots: (S1) 1.0689; (P) 1.0718; (R1) 1.0763; More... EUR/USD's fall from 1.1094 resumed after brief recovery and intraday bias is back on the downside. Current fall is seen as corrective the whole up trend from 0.9534. Deeper fall should be seen to 1.0515 cluster support, 38.2% retracement of 0.9534 to 1.1094 at 1.0498. On the upside, break of 1.0745 resistance will indicate short term bottoming. Stronger rebound would be seen back to 55 D EMA (now at 1.0836). | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
|---|
| 23:50 | JPY | Industrial Production M/M Apr P | -0.40% | 1.40% | 1.10% | | 23:50 | JPY | Retail Trade Y/Y Apr | 5.00% | 7.10% | 7.20% | 6.90% | | 01:00 | NZD | ANZ Business Confidence May | -31.1 | -43.8 | | 01:30 | AUD | Monthly CPI Y/Y Apr | 6.80% | 6.40% | 6.30% | | 01:30 | AUD | Private Sector Credit M/M Apr | 0.60% | 0.30% | 0.30% | 0.20% | | 01:30 | AUD | Construction Work Done Q1 | 1.80% | 0.60% | -0.40% | 1.00% | | 01:30 | CNY | NBS Manufacturing PMI May | 48.8 | 49.4 | 49.2 | | 01:30 | CNY | Non-Manufacturing PMI May | 54.5 | 54.9 | 56.4 | | 05:00 | JPY | Housing Starts Y/Y Apr | -11.90% | -0.90% | -3.20% | | 05:00 | JPY | Consumer Confidence Index May | 36 | 36.1 | 35.4 | | 06:00 | EUR | Germany Import Price Index M/M Apr | -1.70% | -0.60% | -1.10% | | 06:30 | CHF | Real Retail Sales Y/Y Apr | -3.70% | -1.40% | -1.90% | | 06:45 | EUR | France Consumer Spending M/M Apr | -1.00% | 0.30% | -1.30% | -0.80% | | 06:45 | EUR | France GDP Q/Q Q1 | 0.20% | 0.20% | 0.20% | | 07:55 | EUR | Germany Unemployment Change Apr | 9K | 15K | 24K | 23k | | 07:55 | EUR | Germany Unemployment Rate Apr | 5.60% | 5.60% | 5.60% | | 08:00 | CHF | Credit Suisse Economic Expectations May | -32.2 | -33.3 | | 12:00 | EUR | Germany CPI M/M May P | -0.10% | 0.30% | 0.40% | | 12:00 | EUR | Germany CPI Y/Y May P | 6.10% | 6.50% | 7.20% | | 12:30 | CAD | GDP M/M Mar | 0.00% | -0.10% | 0.10% | | 13:45 | USD | Chicago PMI May | 47.1 | 48.6 | | 18:00 | USD | Fed's Beige Book |
|
|
|
