Sterling Rises on PM Truss U-Turn Rumor
| Action Insight Daily Report 10-3-22 |
Sterling Rises on PM Truss U-Turn Rumor |
Sterling strengthens entering into European session, on rumors that UK Prime Minister Liz Truss to preparing to do a U-turn on tax and spending cuts. The talks came after Truss faced heavy scrutiny from Tory rebellions at the Conservative Party Conference. Markets are steady elsewhere, though. Traders are holding their bets for now, and await RBA and RBNZ rate hikes, as well as US heavy weight data in ISM and NFP later in the week. Technically, one immediate focus in EUR/GBP's reaction to 0.8720 resistance turned support. Sustained break there will argue that rise from 0.8201 has completed at 0.9267 as a three-wave move. That would in turn argue that long term sideway pattern is extending with another falling leg. Deeper decline would be see to 55 day EMA (now at 0.8636) and below. Such development, if happens, would provide support the to Pound against other currencies. In Asia, Nikkei closed up 0.68%. Hong Kong HSI is down -1.27%. Singapore Strait Times is down -0.39%. Japan 10-year JGB yield is down -0.0091 at 0.243. |
GBP/JPY Daily Outlook Daily Pivots: (S1) 159.91; (P) 161.05; (R1) 162.65; More... Intraday bias in GBP/JPY remains mildly on the upside as rebound from 148.93 extends higher. Further rally should be seen to retest 169.10 high. Strong resistance could be seen there to limit upside, at least on first attempt. On the downside, below 159.41 minor support will turn intraday bias neutral first. | |
| 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 | 0.10% | 0.30% | | 06:30 | CHF | CPI Y/Y Sep | 3.50% | 3.50% | | 07:30 | CHF | SVME PMI Sep | 54.6 | 56.4 | | 07:45 | EUR | Italy Manufacturing PMI Sep | 47.5 | 48 | | 07:50 | EUR | France Manufacturing PMI Sep F | 47.8 | 47.8 | | 07:55 | EUR | Germany Manufacturing PMI Sep F | 48.3 | 48.3 | | 08:00 | EUR | Eurozone Manufacturing PMI Sep F | 48.5 | 48.5 | | 08:30 | GBP | Manufacturing PMI Sep | 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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