Canadian Dollar Dips Slightly after CPI, Euro Rally Fades
| Action Insight Mid-Day Report 7-18-23 |
Canadian Dollar Dips Slightly after CPI, Euro Rally Fades |
Canadian Dollar is having a mild slump in early US session following lower-than-expected headline CPI reading. However, the currency's slide was largely restrained, primarily due to the base-year effects of gasoline prices contributing to the deceleration in consumer inflation. Concurrently, Australian and New Zealand Dollars also experienced a slight dip amid mixed risk sentiment. Euro, after rising slightly earlier in the day, has softened marginally, as ECB officials re-emphasized the uncertainty regarding more monetary tightening beyond July. In contrast, Japanese Yen and Swiss Franc are so far today's better performers, with British Pound and Dollar following closely. Although US futures suggest a moderately lower open, persistence of stock market selloff remains uncertain. A shift in overall risk sentiment later in the session could potentially cause Dollar and Yen to turn lower again On a technical note, while CAD/JPY is trying to resume the corrective fall from 109.48, downside momentum is so far weak. Indeed, some support could be seen from 38.2% retracement of 94.04 to 109.48 at 103.58 to contain downside, at least on first attempt. Break of 105.91 minor resistance will turn bias back to the upside for stronger rebound back towards 109.48 high. In Europe, at the time of writing, FTSE is up 0.07%. DAX is down -0.08%. CAC is down -0.10%. Germany 10-year yield is down -0.093 at 2.389. Earlier in Asia, Nikkei rose 0.32%. Hong Kong HSI dropped -2.05%. China Shanghai SSE dropped -0.37%. Singapore Strait Times dropped -0.01%. Japan 10-year JGB yield rose 0.0066 to 0.487. |
EUR/USD Mid-Day Outlook Daily Pivots: (S1) 1.1211; (P) 1.1230; (R1) 1.1257; More... Immediate focus is now on 1.1273 fibonacci level in EUR/USD. As upside momentum is diminishing as seen in 4H MACD, upside could be limited by 1.1273. Break of 1.1202 minor support will indicate short term topping, and turn bias back to the downside for deeper pull back. Nevertheless, sustained break of 1.1273 will extend larger up trend to 161.8% projection of 1.0634 to 1.1011 from 1.0832 at 1.1442 next. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 01:30 | AUD | RBA Meeting Minutes | | 04:30 | JPY | Tertiary Industry Index M/M May | 1.20% | 0.40% | 1.20% | | 12:15 | CAD | Housing Starts Jun | 281K | 215K | 202K | 200K | | 12:30 | CAD | CPI M/M Jun | 0.10% | 0.30% | 0.40% | | 12:30 | CAD | CPI Y/Y Jun | 2.80% | 3.00% | 3.40% | | 12:30 | CAD | CPI Core M/M Jun | 0.10% | 0.20% | 0.10% | | 12:30 | CAD | CPI Median Y/Y Jun | 3.90% | 3.70% | 3.90% | | 12:30 | CAD | CPI Trimmed Y/Y Jun | 3.70% | 3.60% | 3.80% | | 12:30 | CAD | CPI Common Y/Y Jun | 5.10% | 5.00% | 5.20% | | 12:30 | CAD | Industrial Product Price M/M Jun | -0.60% | -0.10% | -1% | | 12:30 | CAD | Raw Material Price Index Jun | -1.50% | -0.20% | -4.90% | | 12:30 | USD | Retail Sales M/M Jun | 0.20% | 0.50% | 0.30% | 0.50% | | 12:30 | USD | Retail Sales ex Autos M/M Jun | 0.20% | 0.30% | 0.10% | 0.30% | | 13:15 | USD | Industrial Production M/M Jun | -0.50% | 0.00% | -0.20% | -0.50% | | 13:15 | USD | Capacity Utilization Jun | 78.90% | 79.50% | 79.60% | 79.40% | | 14:00 | USD | Business Inventories May | 0.20% | 0.20% | | 14:00 | USD | NAHB Housing Market Index Jul | 55 | 55 |
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