Dollar Lifted Mildly by Core PCE Reading, Euro Losing Momentum
| Action Insight Mid-Day Report 9-30-22 |
Dollar Lifted Mildly by Core PCE Reading, Euro Losing Momentum |
Dollar is lifted mildly after stronger than expected core PCE inflation reading. But overall markets are relatively quite in quarter-end trading. Sterling is still keeping its place as the strongest one for the week, but rebound appears to be losing some momentum. Euro is following as second, and then Swiss Franc. Yen is among the worst performers with commodity currencies. The question is whether risk aversion could give Dollar and Yen a lift in the final hours. Technically, Euro's rebound is also momentum as seen in both EUR/USD and EUR/JPY. There's just isn't enough follow through buying to push the pairs through 0.9863 and 142.28 resistance respectively. Rejection by these levels, followed by a reversal, will keep near term outlook bearish for another fall through this week's lows, at a later stage. In Europe, at the time of writing, FTSE is down -0.15%. DAX is up 0.27%. CAC is up 0.38%. Germany 10-year yield is down -0.089 at 2.089. Earlier in Asia, Nikkei dropped -1.83%. Hong Kong HSI rose 0.33%. China Shanghai SSE dropped -0.55%. Singapore Strait Times rose 0.49%. Japan 10-year JGB yield dropped -0.0074 to 0.252. |
EUR/USD Mid-Day Outlook Daily Pivots: (S1) 0.9694; (P) 0.9755; (R1) 0.9874; More... Intraday bias in EUR/USD remains neutral at this point, and outlook stays bearish with 0.9863 support turned resistance intact. Break of 0.9634 will suggest that larger down trend is ready to resume. Intraday bias will be back on the downside for 0.9534 and below. However, sustained break of 0.9863 will confirm short term bottoming, and bring stronger rally back to 1.0197 resistance instead. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 22:45 | NZD | Building Permits M/M Aug | -1.60% | 5.00% | 4.90% | | 23:30 | JPY | Unemployment Rate Aug | 2.50% | 2.50% | 2.60% | | 23:50 | JPY | Industrial Production M/M Aug P | 2.70% | -0.20% | 0.80% | | 23:50 | JPY | Retail Trade Y/Y Aug | 4.10% | 2.80% | 2.40% | | 01:30 | AUD | Private Sector Credit M/M Aug | 0.80% | 0.80% | 0.70% | 0.80% | | 01:30 | CNY | NBS Manufacturing PMI Sep | 50.1 | 49.2 | 49.4 | | 01:30 | CNY | Non-Manufacturing PMI Sep | 50.6 | 52 | 52.6 | | 01:45 | CNY | Caixin Manufacturing PMI Sep | 48.1 | 49.9 | 49.5 | | 05:00 | JPY | Housing Starts Y/Y Aug | 4.60% | -4.10% | -5.40% | | 05:00 | JPY | Consumer Confidence Index Sep | 30.8 | 33.6 | 32.5 | | 06:00 | GBP | GDP Q/Q Q2 F | 0.20% | -0.10% | -0.10% | | 06:00 | GBP | Current Account (GBP) Q2 | -33.8B | -43.9B | -51.7B | -43.9B | | 06:30 | CHF | Real Retail Sales Y/Y Aug | 3.00% | 2.80% | 2.60% | | 06:45 | EUR | France Consumer Spending M/M Aug | 0.00% | 0.00% | -0.80% | | 07:00 | CHF | KOF Leading Indicator Sep | 93.8 | 86.2 | 86.5 | 93.5 | | 07:55 | EUR | Germany Unemployment Change Sep | 14K | 20K | 28K | | 07:55 | EUR | Germany Unemployment Rate Sep | 5.50% | 5.50% | 5.50% | | 08:00 | EUR | Italy Unemployment Aug | 7.80% | 7.90% | 7.90% | | 08:30 | GBP | Mortgage Approvals Aug | 74K | 63K | 64K | | 08:30 | GBP | M4 Money Supply M/M Aug | -0.20% | 0.50% | 0.50% | | 09:00 | EUR | Eurozone Unemployment Rate Aug | 6.60% | 6.60% | 6.60% | | 09:00 | EUR | Eurozone CPI Y/Y Sep P | 10.00% | 9.10% | 9.10% | | 09:00 | EUR | Eurozone CPI Core Y/Y Sep P | 4.80% | 4.70% | 4.30% | | 12:30 | USD | Personal Income M/M Aug | 0.30% | 0.30% | 0.20% | 0.30% | | 12:30 | USD | Personal Spending Aug | 0.40% | 0.20% | 0.10% | -0.20% | | 12:30 | USD | PCE Price Index M/M Aug | 0.30% | 0.30% | -0.10% | | 12:30 | USD | PCE Price Index Y/Y Aug | 6.20% | 6.60% | 6.30% | 6.40% | | 12:30 | USD | Core PCE Price Index M/M Aug | 0.60% | 0.50% | 0.10% | 0.00% | | 12:30 | USD | Core PCE Price Index Y/Y Aug | 4.90% | 4.70% | 4.60% | 4.70% | | 13:45 | USD | Chicago PMI Sep | 51.9 | 52.2 | | 14:00 | USD | Michigan Consumer Sentiment Index Sep F | 59.5 | 59.5 |
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