Euro Shrugs Confidence Data, Quiet Markets with Eyes on Yen
| Action Insight Mid-Day Report 8-7-23 |
Euro Shrugs Confidence Data, Quiet Markets with Eyes on Yen |
Today's financial markets exhibited subdued activity, with few standout movements. Notably, even as Eurozone's investor confidence data outperformed expectations, Euro lagged, moving in tandem with Swiss Franc. On the other hand, Sterling is trading mildly higher, echoing the rise of commodity currencies, while Dollar is steady, devoid of fresh buying enthusiasm. The spotlight shifts to Yen in the upcoming Asian session, as data on labor cash earnings and household spending take center stage. BoJ has consistently underscored the centrality of wage growth in securing a sustainable inflation target. Recent updates on wage negotiations appear promising. Strong data sets could further bolster BoJ's inclination to reconsider its ultra-accommodative monetary stance. Despite railing to break through 157.99/158.03 resistance on first attempt, EUR/JPY has been relatively resilient. As long as 155.10 minor support holds, another take on the resistance is expected in the near term. Decisive break will confirm larger up trend resumption. However, break of 155.10 will align to outlook with other Yen crosses, and argue that the corrective pattern from 157.99 is extending with another downleg. Deeper fall could then be seen back towards 151.39 support. In Europe, at the time of writing, FTSE is down -0.49%. DAX is down -0.34%. CAC is down -0.10%. Germany 10-year yield is up 0.0219 at 2.591. Earlier in Asia, Nikkei rose 0.19%. Hong Kong HSI dropped -0.01%. China Shanghai SSE dropped -0.59%. Singapore Strait Times rose 0.53%. Japan 10-year JGB yield dropped -0.018 to 0.628. |
USD/JPY Mid-Day Outlook Daily Pivots: (S1) 141.26; (P) 142.07; (R1) 142.59; More... Intraday bias in USD/JPY stays mildly on the downside for the moment. Fall from 143.88 could be the third leg of the pattern from 145.06. Deeper fall would be seen to 55 D EMA (now at 140.50). On the upside, though, above 143.88 will resume the rise from 137.22 to retest 145.06 resistance instead. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 23:50 | JPY | BoJ Summary of Opinions | | 05:00 | JPY | Leading Economic Index Jun P | 108.9 | 108.9 | 109.2 | | 06:00 | EUR | Germany Industrial Production M/M Jun | -1.50% | -0.40% | -0.20% | -0.10% | | 07:00 | CHF | Foreign Currency Reserves (CHF) Jul | 698B | 725B | | 08:30 | EUR | Eurozone Sentix Investor Confidence Aug | -18.9 | -25 | -22.5 |
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