Dollar Losing Some Momentum Amidst Government Shutdown Concerns
| Action Insight Mid-Day Report 9-26-23 |
Dollar Losing Some Momentum Amidst Government Shutdown Concerns |
Dollar, although retaining its strength, is witnessing mild deceleration in upside momentum as US session starts. The spotlight now shines on any potential progress within the US Congress to prevent a partial government shutdown looming this Sunday. While the notion of a shutdown isn't unfamiliar in the US, having occurred 14 times since 1981, this instance carries heightened significance. Moody's recent warning accentuates this, indicating that a shutdown now could underline how escalating political divides are deteriorating the nation's fiscal position. Focusing on other currencies, Euro emerges as today's frontrunner, with the Yen and Dollar trailing closely. On the other end of the spectrum, Canadian Dollar appears to be the most underwhelming performer, with Sterling and Aussie not faring much better. Swiss Franc and Kiwi present a mixed picture for the time being. Technically, EUR/GBP is having another take on 0.8700 structural resistance today. Decisive break there will strengthen the case that whole corrective fall from 0.9267 has completed with three waves down to 0.8491. That would turn near outlook bullish for further rise to 0.8874/8977 resistance zone. Any upside acceleration in EUR/GBP could help cushion Euro's decline against Dollar. In Europe, at the time of writing, FTSE is up 0.21%. DAX is down -0.62%. CAC is down -0.66%. Germany 10-year yield is down -0.020 at 2.780. Earlier in Asia, Nikkei dropped -1.11%. Hong Kong HSI dropped -1.48%. China Shanghai SSE dropped -0.43%. Singapore Strait Times dropped -0.01%. Japan 10-year JGB yield rose 0.0150 to 0.746. |
USD/JPY Mid-Day Outlook Daily Pivots: (S1) 148.43; (P) 148.70; (R1) 149.15; More... Intraday bias in USD/JPY remains on the upside for the moment. Current rise from 127.20 is in progress to retest 151.93 high. On the downside, however, firm break of 147.31 support will should confirm short term topping, and turn bias to the downside for 145.88 support and below. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 23:50 | JPY | Corporate Service Price Index Y/Y Aug | 2.10% | 1.80% | 1.70% | | 13:00 | USD | S&P/CS Composite-20 HPI Y/Y Jul | -0.50% | -1.20% | | 13:00 | USD | Housing Price Index M/M Jul | 0.10% | 0.30% | | 14:00 | USD | Consumer Confidence Sep | 105.9 | 106.1 | | 14:00 | USD | New Home Sales Aug | 700K | 714K |
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