Euro and Swiss Franc Down, Sterling Extending Rebound
| Action Insight Mid-Day Report 10-3-22 |
Euro and Swiss Franc Down, Sterling Extending Rebound |
Funds appear to be flowing out of Euro and Swiss Franc, in relatively quiet trading today. Some focuses are on the Euro-denominated bonds issued by Credit Suisse, which dropped to record lows. Investors are concerned about the Swiss bank's restructuring program, due to be announced later in the month. Euro and Franc are the worst performers, followed by Yen, while Dollar is mixed. Sterling is trying to rebound after UK Finance Minister Kwasi Kwarteng confirmed to abandons plan to scrap 45p top rate of income tax. But Aussie and Kiwi are stronger ahead of rate hikes by RBA (Tue) and RBNZ (Wed). Technically, EUR/GBP is breaking through 0.8720 resistance turned support to indicate near term bearish reversal. But the question is whether it's translated into more upside in GBP/USD, downside in EUR/USD, or both. For now, outlook in EUR/USD isn't bullish as long as 0.9863 support turned resistance holds. Break of 0.9634 minor support will bring retest of 0.9534 low. In Europe, at the time of writing, FTSE is down -0.34%. DAX is down -0.07%. CAC is down -0.27%. Germany 10-year yield is down -0.134 at 1.977. Earlier in Asia, Nikkei rose 1.07%. Hong Kong HSI dropped -0.83%. China was on holiday. Singapore Strait Times dropped -0.74%. Japan 10-year JGB yield dropped -0.0079 to 0.244. |
GBP/USD Mid-Day Outlook Daily Pivots: (S1) 1.1052; (P) 1.1143; (R1) 1.1260; More... GBP/USD's rebound from 1.0351 is in progress and intraday bias stays on the upside, Further rally would be seen to 61.8% retracement of 1.2292 to 1.0351 at 1.1551. On the downside, break of 1.0914 minor support will indicate that the rebound is over, and bring retest of 1.0351 low. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 23:50 | JPY | Tankan Large Manufacturing Index Q3 | 8 | 11 | 9 | | 23:50 | JPY | Tankan Non-Manufacturing Index Q3 | 14 | 13 | 13 | | 23:50 | JPY | Tankan Large Manufacturing Outlook Q3 | 9 | 11 | 10 | | 23:50 | JPY | Tankan Non-Manufacturing Outlook Q3 | 11 | 15 | 13 | | 23:50 | JPY | Tankan Large All Industry Capex Q3 | 21.50% | 18.80% | 18.60% | | 00:00 | AUD | TD Securities Inflation M/M Sep | 0.50% | -0.50% | | 00:30 | JPY | Manufacturing PMI Sep F | 50.8 | 51 | 51 | | 06:30 | CHF | CPI M/M Sep | -0.20% | 0.10% | 0.30% | | 06:30 | CHF | CPI Y/Y Sep | 3.30% | 3.50% | 3.50% | | 07:30 | CHF | SVME PMI Sep | 57.1 | 54.6 | 56.4 | | 07:45 | EUR | Italy Manufacturing PMI Sep | 48.3 | 47.5 | 48 | | 07:50 | EUR | France Manufacturing PMI Sep F | 47.7 | 47.8 | 47.8 | | 07:55 | EUR | Germany Manufacturing PMI Sep F | 47.8 | 48.3 | 48.3 | | 08:00 | EUR | Eurozone Manufacturing PMI Sep F | 48.4 | 48.5 | 48.5 | | 08:30 | GBP | Manufacturing PMI Sep | 48.4 | 48.5 | 48.5 | | 13:30 | CAD | Manufacturing PMI Sep | 50.6 | 48.7 | | 13:45 | USD | Manufacturing PMI Sep F | 51.8 | 51.8 | | 14:00 | USD | ISM Manufacturing PMI Sep | 52.3 | 52.8 | | 14:00 | USD | ISM Manufacturing Prices Paid Sep | 51.8 | 52.5 | | 14:00 | USD | ISM Manufacturing Employment Index Sep | 54.2 | | 14:00 | USD | Construction Spending M/M Aug | -0.30% | -0.40% |
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