Dollar Soft With Yen and Franc, Sterling Awaits Next Move

Action Insight Daily Report 10-6-22

Dollar Soft With Yen and Franc, Sterling Awaits Next Move

Dollar traded with an undertone in Asian session together with Yen and Swiss Franc. The pull back in US stocks overnight turned out to be shallow and brief. Major indexes managed to pare back much of earlier losses to close just slightly lower. Investors seemed to be just cautious ahead of Friday's job report. Meanwhile, commodity currencies are strengthening in Asian session, while Euro and Sterling are mixed.

Technically, in addition to Dollar's next move, development in Sterling is also worth a note. After two volatile weeks, both EUR/GBP and GBP/CHF are now pressing 55 day EMA (from opposite sides of course). The Pound appears to be finding it difficult to break through the EMAs decisively. Rejection from there could prompt sellers to come back and push it back towards the near term spike low. As for GBP/CHF, break of 1.0811 minor support will argue that rebound from 1.0183 has completed, and bring deeper fall back towards there.

In Asia, at the time of writing, Nikkei is up 1.01%. Hong Kong HSI is down -0.17%. Singapore Strait Times is up 0.32%. Japan 10-year JGB yield is up 0.004 at 0.254. Overnight, DOW dropped -0.14%. S&P 500 dropped -0.20%. NASDAQ dropped -0.25%. 10-year yield rose 0.142 to 3.759

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Top Movers | HeatMap | Pivot Points | Pivot Meters | Action Bias | Vol

GBP/USD Daily Outlook

Daily Pivots: (S1) 1.1206; (P) 1.1350; (R1) 1.1473; More...

Intraday bias in GBP/USD remains neutral for the moment. On the downside, break of 1.1023 minor support will indicate that rebound from 1.0351 is over. Intraday bias will be back on the downside for retesting 1.0351. On the upside, firm break of 61.8% retracement of 1.2292 to 1.0351 at 1.1551 will pave the way to 1.2292 resistance.

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EURUSD | USDJPY | GBPUSD | USDCHF | AUDUSD | USDCAD

EURJPY | EURGBP | EURCHF | EURAUD | GBPJPY

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