Dollar Up on PPI Data, But Strong Enough for Breakout?
| Action Insight Mid-Day Report 8-11-23 |
Dollar Up on PPI Data, But Strong Enough for Breakout? |
Dollar is making slight gains in early US session, buoyed by slightly better-than-expected PPI data release. Adding to its strength are mild risk aversion sentiments and continued rebound in Treasury yields. If this buying momentum sustains, the greenback could well close out the week as the top performer. The remaining question is whether its momentum is strong enough to break out from the near term range against European majors. Speaking of European currencies, British Pound is the standout, drawing strength from an upbeat UK GDP data report released earlier in the day. However, the enthusiasm seems to be waning, with no evident sustained buying. Yen, meanwhile, is on track to finish at the bottom of the performance chart, showing no signs of a rebound. Commodity-linked currencies are trailing closely behind Yen, while Euro and Swiss Franc are managing to hold firmer ground. Technically, the support from 55 D EMA looks insufficient to prompt a stronger rebound in EUR/USD. Break of last week's low at 1.0911, and sustained trading below the EMA will set up deeper fall to 1.0634 support, even as a correction to the up trend from 0.9534. Let's see if we'll know the answer today, or next week. In Europe, at the time of writing, FTSE is down -1.40%. DAX -1.10%. CAC is down -1.47%. Germany 10-year yield is up 0.0091 at 2.619. Earlier in Asia, Nikkei rose 0.84%. Hong Kong HSI fell -0.90%. China Shanghai SSE dropped 2.01%. Singapore Strait Times lost -0.86%. Japan 10-year JGB yield rose 0.0241 to 0.589. |
USD/CHF Mid-Day Outlook Daily Pivots: (S1) 0.8713; (P) 0.8746; (R1) 0.8800; More.... Sideway trading continues in USD/CHF and intraday bias stays neutral. On the downside break of 0.8663 minor support should confirm rejection by 0.8818 and turn intraday bias back to the downside for retesting 0.8551 first. Nevertheless, decisive break of 0.8818 will carry larger bullish implication, and target 0.9146 cluster resistance next. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
|---|
| 22:30 | NZD | Business NZ PMI Jul | 46.3 | 47.5 | 47.4 | | 06:00 | GBP | GDP Q/Q Q2 P | 0.20% | 0.00% | 0.10% | | 06:00 | GBP | GDP M/M Jun | 0.50% | 0.20% | -0.10% | | 06:00 | GBP | Industrial Production M/M Jun | 1.80% | -0.10% | -0.60% | | 06:00 | GBP | Industrial Production Y/Y Jun | 0.70% | -2.10% | -2.30% | -2.10% | | 06:00 | GBP | Manufacturing Production M/M Jun | 2.40% | 0.10% | -0.20% | -0.10% | | 06:00 | GBP | Manufacturing Production Y/Y Jun | 3.10% | -1.00% | -1.20% | -0.60% | | 06:00 | GBP | Goods Trade Balance (GBP) Jun | -15.5B | -16.2B | -18.7B | -18.4B | | 08:00 | EUR | Italy Trade Balance (EUR) Jun | 7.72B | 4.23B | 4.71B | 4.77B | | 11:00 | GBP | NIESR GDP Estimate (3M) Jul | 0.30% | 0.00% | | 12:30 | USD | PPI M/M Jul | 0.30% | 0.20% | 0.10% | 0.00% | | 12:30 | USD | PPI Y/Y Jul | 0.80% | 0.70% | 0.10% | 0.20% | | 12:30 | USD | PPI Core M/M Jul | 0.30% | 0.20% | 0.10% | -0.10% | | 12:30 | USD | PPI Core Y/Y Jul | 2.40% | 2.30% | 2.40% | | 14:00 | USD | Michigan Consumer Sentiment Index Aug P | 70.9 | 71.6 |
|
|
|
