GBP Firm, USD Down, CAD Mixed ahead of BoC
| Action Insight Daily Report 10-26-22 |
GBP Firm, USD Down, CAD Mixed ahead of BoC |
Dollar was sold off overnight as stock markets extended rebound. But there is no clear downside breakout in the greenback yet. For now, Sterling is the strongest one for the week as political situation in the UK appears to have stabilized. Euro is the second best as helped by rally against Swiss Franc. Dollar is just the third weakest, following Yen and Kiwi. Canadian Dollar is mixed and will look forward to today's BoC rate decision for guidance. Technically, focus is back to 0.9998 resistance in EUR/USD and 1.1494 resistance in GBP/USD. Firm break of these levels will confirm resumption of rebound from 0.9534 and 1.0351 respectively. If happen this could be a signal of more Dollar weakness elsewhere. In particular, USD/CAD could then be dragged through 1.3501 support. But then, another scenario would be upside break out in EUR/JPY and GBP/JPY through 148.38 and 170.07. Let's see. In Asia, at the time of writing, Nikkei is up 1.06%. Hong Kong HSI is up 2.17%. China Shanghai SSE is up 1.42%. Singapore Strait Times is up 0.99%. Japan 10-year JGB yield is down -0.0046 at 0.252. Overnight, DOW rose 1.07%. S&P 500 rose 1.63%. NASDAQ rose 2.25%. 10-year yield dropped -0.126 to 4.108. |
GBP/JPY Daily Outlook Daily Pivots: (S1) 168.43; (P) 169.19; (R1) 170.53; More... GBP/JPY is staying below 170.07 and intraday bias remains neutral. But further rally is still in favor. Firm break of 170.07 will confirm up trend resumption. Next target is 100% projection of 148.93 to 165.69 from 159.71 at 176.47. Nevertheless, break of 164.95 minor support will turn bias back to the downside for 159.71 support instead. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
|---|
| 23:50 | JPY | Corporate Service Price Index Y/Y Sep | 2.10% | 1.80% | 1.90% | 2.00% | | 00:00 | NZD | ANZ Business Confidence Oct | -42.7 | -36.7 | | 00:30 | AUD | CPI Q/Q Q3 | 1.80% | 1.50% | 1.80% | | 00:30 | AUD | CPI Y/Y Q3 | 7.30% | 6.90% | 6.10% | | 00:30 | AUD | RBA Trimmed Mean CPI Q/Q Q3 | 1.80% | 1.50% | 1.50% | 1.60% | | 00:30 | AUD | RBA Trimmed Mean CPI Y/Y Q3 | 6.10% | 5.60% | 4.90% | | 08:00 | CHF | Credit Suisse Economic Expectations Oct | -69.2 | | 08:00 | EUR | Eurozone M3 Money Supply Y/Y Sep | 6.10% | 6.10% | | 12:30 | USD | Goods Trade Balance (USD) Sep P | -87.8B | -87.3B | | 12:30 | USD | Wholesale Inventories Sep P | 1.30% | 1.30% | | 14:00 | USD | New Home Sales Sep | 590K | 685K | | 14:00 | CAD | BoC Interest Rate Decision | 4.00% | 3.25% | | 14:30 | USD | Crude Oil Inventories | -0.3M | -1.7M | | 15:00 | CAD | BoC Press Conference |
|
|
|
