Dollar Declines as Headline and Core CPI Slowed; Sterling Soars on Positive Job Data
| Action Insight Mid-Day Report 6-13-23 |
Dollar Declines as Headline and Core CPI Slowed; Sterling Soars on Positive Job Data |
Dollar falls significantly in early US session, reacting to reports that both headline and core CPI decelerated in May. This development boosts confidence to Fed policymakers to skip tightening at tomorrow's decision. Meanwhile, Canadian Dollar and Yen are following as the next weakest for now. Contrarily, Sterling is witnessing a surge, rebounding from its initial dip. Solid job figures, especially strong wage growth, are strengthening the argument for another rate hike by BoE next week. Euro, however, is falling behind following disappointing Germany ZEW data. Australian and New Zealand Dollar are mixed for now, but stay as some of the best performers for the week. Technically, GBP/CHF is worth some attention this week, in particular with UK GDP data featured tomorrow. It's now pressing 1.1412 resistance. Firm break there will add to case that whole corrective pattern from 1.1574 has completed. More importantly, the up trend from 1.0183 might be ready to resume through 1.1574 high. Let's see how it goes. In Europe, at the time of writing, FTSE is flat. DAX is up 0.29%. CAC is up 0.28%. Germany 10-year yield is down -0.028 at 2.363. Earlier in Asia, Nikkei rose 1.80%. Hong Kong HSI rose 0.60%. China Shanghai SSE rose 0.15%. Singapore Strait Times dropped -0.21%. Japan 10-year JGB yield dropped -0.0078 to 0.421. |
GBP/USD Mid-Day Outlook Daily Pivots: (S1) 1.2466; (P) 1.2533; (R1) 1.2578; More... Intraday bias in GBP/USD is back on the upside as rebound from 1.2306 resumed after brief retreat. Further rally should be seen to retest 1.2678 high. Based on current momentum, upside could be limited there, to bring another fall to extend the corrective pattern from 1.2678. On the downside, break of 1.2485 support will turn bias back to the downside for 1.2306 support instead. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
|---|
| 23:50 | JPY | BSI Large Manufacturing Index Q2 | -0.4 | -10.5 | | 00:30 | AUD | Westpac Consumer Confidence Jun | 0.20% | -7.90% | | 01:30 | AUD | NAB Business Conditions May | 8 | 14 | | 01:30 | AUD | NAB Business Confidence May | -4 | 0 | | 06:00 | GBP | Claimant Count Change May | -13.6K | 21.4K | 23.4K | | 06:00 | GBP | ILO Unemployment Rate (3M) Apr | 3.80% | 4.00% | 3.90% | | 06:00 | GBP | Average Earnings Excluding Bonus 3M/Y Apr | 7.20% | 6.90% | 6.70% | 6.80% | | 06:00 | GBP | Average Earnings Including Bonus 3M/Y Apr | 6.50% | 6.10% | 5.80% | 6.10% | | 06:00 | EUR | Germany CPI M/M May F | -0.10% | -0.10% | -0.10% | | 06:00 | EUR | Germany CPI Y/Y May F | 6.10% | 6.10% | 6.10% | | 09:00 | EUR | Germany ZEW Economic Sentiment Jun | -8.5 | -14.7 | -10.7 | | 09:00 | EUR | Germany ZEW Current Situation Jun | -56.5 | -40 | -34.8 | | 09:00 | EUR | Eurozone ZEW Economic Sentiment Jun | -10 | -13.1 | -9.4 | | 10:00 | USD | NFIB Business Optimism Index May | 89.4 | 88.8 | 89 | | 12:30 | USD | CPI M/M May | 0.10% | 0.30% | 0.40% | | 12:30 | USD | CPI Y/Y May | 4.00% | 4.20% | 4.90% | | 12:30 | USD | CPI Core M/M May | 0.40% | 0.40% | 0.40% | | 12:30 | USD | CPI Core Y/Y May | 5.30% | 5.30% | 5.50% |
|
|
|
