Yen and Franc Strong on Falling Global Yields, Dollar Looks into NFP
Action Insight Daily Report 11-5-21

Yen and Franc Strong on Falling Global Yields, Dollar Looks into NFP

Yen and Swiss Franc are currently the strongest ones for the week and remain generally firm. Falling global benchmark treasury yields seem to be supporting both "safe-haven" currencies. Germany 10-year bund yield is back below -0.22, UK 10-year gilt yield is below 0.95 while Japan 10-year JGB yield is back at 0.07. Aussie is worst performing one for the week, followed by Sterling, as selloff continued after their respective central bank meeting. Dollar is firm but needs guidance from non-farm payroll report for taking up a more committed direction.

Technically, we'd pay special attention to EUR/USD and USD/JPY today. EUR/USD is now stuck in range of 1.1523/1691. USD/JPY is also bounded inside 113.24/114.69. For now, upside breakout in Dollar is in favor in both pairs. But we'll have to see if NFP supports that.

In Asia, at the time of writing, Nikkei is down -0.70%. Hong Kong HSI is down -0.99%. China Shanghai SSE is down -0.32%. Singapore Strait Times is up 0.56%. Japan 10-year JGB yield is down -0.012 at 0.070. Overnight, DOW dropped -0.09%. S&P 500 rose 0.42%. NASDAQ rose 0.81%. 10-year yield dropped -0.0055 to 1.524.

Full Report Here

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USD/JPY Daily Outlook

Daily Pivots: (S1) 113.42; (P) 113.85; (R1) 114.19; More...

Intraday bias in USD/JPY remains neutral and consolidation from 114.69 could continue. On the upside, firm break of 114.69 will resume the larger up trend to 100% projection of 102.58 to 111.65 from 109.11 at 118.18 next. Break of 113.24 will bring deeper pull back, but downside should be contained above 112.07 resistance turned support to bring rebound.

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EURUSD | USDJPY | GBPUSD | USDCHF | AUDUSD | USDCAD

EURJPY | EURGBP | EURCHF | EURAUD | GBPJPY

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Fundamental Analysis | Technical Analysis
In-depth Reports
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Economic Calendar
GMT Ccy Events Actual Forecast Previous Revised
21:30 AUD AiG Performance of Services Index Oct 47.6 45.7
23:30 JPY Overall Household Spending Y/Y Sep -1.90% -3.90% -3.00%
0:30 AUD RBA Monetary Policy Statement
7:00 EUR Germany Industrial Production M/M Sep 1.10% -4.00%
7:45 EUR France Industrial Output M/M Sep 0.40% 1.00%
8:00 CHF Foreign Currency Reserves (CHF) Oct 939B
9:00 EUR Italy Retail Sales M/M Sep 0.70% 0.40%
10:00 EUR Eurozone Retail Sales M/M Sep 0.20% 0.30%
12:30 USD Nonfarm Payrolls Oct 425K 194K
12:30 USD Unemployment Rate Oct 4.70% 4.80%
12:30 USD Average Hourly Earnings M/M Oct 0.40% 0.60%
12:30 CAD Net Change in Employment Oct 19.3K 157.1K
12:30 CAD Unemployment Rate Oct 6.90% 6.90%
14:00 CAD Ivey PMI Oct 71.2 70.4