Euro Lags in Muted Markets; Eyes on Upcoming PMI Data
| Action Insight Mid-Day Report 8-22-23 |
Euro Lags in Muted Markets; Eyes on Upcoming PMI Data |
Euro is currently the weakest major currency in very quiet markets today, with little of note from the economic calendar. Meanwhile, other European majors are soft too, with Sterling just performing slightly better than Swiss Franc. Meanwhile, the rebound in metal prices is helping Aussie recover, while Kiwi is following. Yen is reversing earlier selloff but there is no sign of a sustainable rebound yet. The markets might just wait for tomorrow's PMI data from major economies to come back to life. Technically, Dollar is mixed for now without a clear near term direction. USD/CHF continues to press 0.8818 support turned resistance, which now coincides with 55 D EMA (now at 0.8818). Sustained break there will be a strong signal that it's at least correcting the down trend from 1.0146. Stronger rally should be seen to 0.9146 cluster resistance (38.2% retracement of 1.0146 to 0.8551 at 0.9160). However, rejection by 0.8818 and 55 D EMA will maintain near term bearishness for another fall through 0.8551 low. Clarity on the direction should emerge in the next few days. In Europe, at the time of writing, FTSE is up 0.51%. DAX is up 0.99%. CAC is up 0.97%. Germany 10-year yield is down -0.0246 at 2.677. Earlier in Asia, Nikkei rose 0.92%. Hong Kong HSI rose 0.95%. China Shanghai SSE rose 0.88%. Singapore Strait Times rose 0.19%. Japan 10-year JGB yield rose 0.0163 to 0.672. |
EUR/USD Mid-Day Outlook Daily Pivots: (S1) 1.0873; (P) 1.0893; (R1) 1.0917; More... EUR/USD dips notably after rejection by 55 4H EMA, but stays above 1.0832 support. Intraday bias remains neutral first. On the downside, decisive break of 1.0832 support will resume the fall from 1.1274 and target 1.0609/34 cluster support next. On the upside, above 1.0951 minor resistance will turn intraday bias to the upside for stronger recovery. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 06:00 | CHF | Trade Balance (CHF) Jul | 3.13B | 4.50B | 4.82B | | 06:00 | GBP | Public Sector Net Borrowing (GBP) Jul | 3.5B | 3.4B | 17.7B | 17.1B | | 08:00 | EUR | Eurozone Current Account (EUR) Jun | 35.8B | 10.2B | 9.1B | 7.9B | | 14:00 | USD | Existing Home Sales Jul | 4.15M | 4.16M |
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