Dollar Dips as PCE Inflation Slowed, But Loss Limited So Far
| Action Insight Mid-Day Report 8-26-22 |
Dollar Dips as PCE Inflation Slowed, But Loss Limited So Far |
Dollar dips in early US session following lower than expected PCE and core inflation data. But loss is so far limited as traders are holding their bets ahead of Fed Chair Jerome Powell's speech. Euro, Aussie and Swiss Franc are so far the stronger ones for the day, while Yen and Kiwi are the weaker ones. Trading in the stock markets is subdued with major European indexes, and US futures flat. Technically, to confirm selloff in Dollar, some levels need to be violated decisively, at least. The levels include 1.0121 resistance in EUR/USD, 1.2002 resistance in GBP/USD, 0.9951 support in USD/CHF and 1.2826 support in USD/CAD. Otherwise, any dip in Dollar as reactions to Powell would be considered temporary first. In Europe, at the time of writing, FTSE is up 0.18%. DAX is down -0.04%. CAC is down -0.09%. Germany 10-year yield is up 0.0382 at 1.357. Earlier in Asia, Nikkei rose 0.57%. Hong Kong HSI rose 1.01%. China Shanghai SSE dropped -0.31% Singapore Strait Times rose 0.05%. Japan 10-year JGB yield dropped -0.0094 to 0.221. |
EUR/USD Mid-Day Outlook Daily Pivots: (S1) 0.9939; (P) 0.9986; (R1) 1.0024; More... EUR/USD recovers mildly today but outlook is unchanged. Intraday bias remains neutral first. Consolidation from 0.9899 could extend, but upside of recovery should be limited by 1.0121 minor resistance to bring another fall. Break of 0.9899 will resume larger down trend to 61.8% projection of 1.0773 to 0.9951 from 1.0368 at 0.9860. Firm break there should prompt downside acceleration to 100% projection at 0.9546. However, firm break of 1.0121 will dampen this view and turn focus to 1.0368 resistance instead. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 23:30 | JPY | Tokyo CPI Core Y/Y Aug | 2.60% | 2.50% | 2.30% | | 06:00 | EUR | Germany Gfk Consumer Confidence Sep | -36.5 | -31.5 | -30.6 | -30.9 | | 08:00 | EUR | Eurozone M3 Money Supply Y/Y Jul | 5.50% | 5.60% | 5.70% | | 12:30 | USD | Personal Income M/M Jul | 0.20% | 0.60% | 0.60% | 0.70% | | 12:30 | USD | Personal Spending M/M Jul | 0.10% | 0.40% | 1.10% | 1.00% | | 12:30 | USD | PCE Price Index M/M Jul | -0.10% | 1.00% | | 12:30 | USD | PCE Price Index Y/Y Jul | 6.30% | 6.80% | | 12:30 | USD | Core PCE Price Index M/M Jul | 0.10% | 0.30% | 0.60% | | 12:30 | USD | Core PCE Price Index Y/Y Jul | 4.60% | 4.70% | 4.80% | | 12:30 | USD | Goods Trade Balance (USD) Jul P | -89.1B | -99.0B | -98.6B | | 12:30 | USD | Wholesale Inventories Jul P | 0.80% | 1.50% | 1.80% | | 14:00 | USD | Michigan Consumer Sentiment Index Aug F | 55.2 | 55.1 |
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