CAD Steady after BoC Hike, GBP Pressing Pandemic Low
| Action Insight Mid-Day Report 9-7-22 |
CAD Steady after BoC Hike, GBP Pressing Pandemic Low |
Canadian Dollar is steady in early US session after BoC delivered 75bps rate hike and maintained hawkish bias. Dollar remains the strongest one for the week, but continues to pick up momentum against Euro. Yen is still the runaway loser, while selloff in Sterling is intensifying. Aussie and Kiwi are clearly weighed down by risk-off sentiment for now. Technically, GBP/CHF's down trend resumed after brief recovery and breaks through 1.1244 temporary low. Next target is 1.1107 (2020 low). Some support might be seen there to bring rebound on first attempt. But that would depends on GBP/USD's reaction to 1.1409 (2020 low too). In Europe, at the time of writing, FTSE is down -0.82%. DAX is up 0.09%. CAC is down -0.25%. Germany 10-year yield is down -0.0662 at 1.574. Earlier in Asia, Nikkei dropped -0.71%. Hong Kong HSI dropped -0.83%. China Shanghai SSE rose 0.09%. Singapore Strait Times dropped -0.41%. Japan 10-year JGB yield rose 0.0063 to 0.247. |
USD/CAD Mid-Day Outlook Daily Pivots: (S1) 1.3108; (P) 1.3139; (R1) 1.3181; More... Range trading continues in USD/CAD and intraday bias stays neutral. Further rise is expected with 1.2971 support intact. On the upside, decisive break of 1.3222 will resume larger up trend from 1.2005. Next target is 100% projection of 1.2005 to 1.2947 from 1.2401 at 1.3343. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 22:30 | AUD | AiG Performance of Services Index Aug | 53.3 | 51.7 | | 01:30 | AUD | GDP Q/Q Q2 | 0.90% | 0.90% | 0.80% | | 02:00 | CNY | Trade Balance (USD) Aug | 79.4B | 91.8B | 101.3B | | 02:00 | CNY | Exports (USD) Y/Y Jul | 7.10% | 18.00% | | 02:00 | CNY | Imports (USD) Y/Y Aug | 0.30% | 2.30% | | 02:00 | CNY | Trade Balance (CNY) Aug | 536B | 650B | 683B | | 02:00 | CNY | Exports (CNY) Y/Y Aug | 11.80% | 23.90% | | 02:00 | CNY | Imports (CNY) Y/Y Aug | 4.60% | 7.40% | | 05:00 | JPY | Leading Economic Index Jul P | 99.60% | 100.7 | 100.9 | | 06:00 | EUR | Germany Industrial Production M/M Jul | -0.30% | -0.50% | 0.40% | | 07:00 | CHF | Foreign Currency Reserves (CHF) Aug | 860B | 849B | 850B | | 08:00 | EUR | Italy Retail Sales M/M Jul | 1.30% | 0.20% | -1.10% | | 09:00 | EUR | Eurozone GDP Q/Q Q2 | 0.80% | 0.60% | 0.60% | | 09:00 | EUR | Eurozone Employment Change Q/Q Q2 F | 0.40% | 0.30% | 0.30% | | 12:30 | USD | Trade Balance (USD) Jul | -70.6B | -70.2B | -79.6B | | 12:30 | CAD | International Merchandise Trade Jul | 4.05B | 3.8B | 5.0B | 4.9B | | 14:00 | CAD | BoC Interest Rate Decision | 3.25% | 3.25% | 2.50% | | 14:00 | CAD | Ivey PMI Aug | 60.9 | 48.3 | 49.6 | | 18:00 | USD | Fed's Beige Book |
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