Euro Jumps on Record Inflation, Dollar Tumbles on Poor ADP Job Data
Action Insight Daily Report 2-3-22

Markets Steady ahead of ECB and BoE, Dollar Staying Weak

The forex markets are generally steady in Asian session, as traders await ECB and BoE rate decisions. Dollar is staying as the weakest for the week one after yesterday's selloff, followed by Yen. Aussie and Euro are the strongest ones. There is upside prospect for Euro even if ECB delivers just a slight hawkish tilt. But that's far from being certain. Meanwhile, the greenback will continue to look into the developments in overall market sentiments, as well as ISM services today and non-farm payroll report tomorrow.

Technically, it should be about time for Gold to complete the recovery from 1780.10, as it touches 4 hour 55 EMA while 4 hour MACD is approaching trend line. Break of 1794.31 minor support will suggest that fall from 1853.70 is ready to resume through 1780.10 to 1753.32 low. However, firm break of 1816.71 minor resistance will put 1853.70 back into focus. The move in Gold will again be used to confirm the underlying momentum in Dollar's next move.

In Asia, at the time of writing, Nikkei is down -0.98%. Japan 10-year JGB yield is up 0.0073 at 0.186. Hong Kong and China are still on holiday. Overnight, DOW rose 0.63%. S&P 500 rose 0.94%. NASDAQ rose 0.50%. 10-year yield dropped -0.034 to 1.766.

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

GBP/JPY Daily Outlook

Daily Pivots: (S1) 154.95; (P) 155.19; (R1) 155.57; More...

GBP/JPY is staying in consolidation from 152.88 and intraday bias remains neutral. Further fall is still in favor with 155.38 minor resistance intact. Break of 152.88 will resume the decline from 157.74, as the third leg of the corrective pattern from 158.19, to 148.93 support next. However, sustained break of 155.38 will dampen this view and flip bias back to the upside for 157.74/158.19 resistance zone instead.

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EURUSD | USDJPY | GBPUSD | USDCHF | AUDUSD | USDCAD

EURJPY | EURGBP | EURCHF | EURAUD | GBPJPY

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Economic Calendar
GMT Ccy Events Actual Forecast Previous Revised
21:30 AUD AiG Performance of Construction Index Dec 45.9 57
00:30 AUD Building Permits M/M Dec 8.20% -0.90% 3.60% 2.60%
00:30 AUD Trade Balance (AUD) Dec 8.36B 9.80B 9.42B 9.76B
08:50 EUR France Services PMI Jan F 53.1 53.1
08:55 EUR Germany Services PMI Jan F 52.2 52.2
09:00 EUR Eurozone Services PMI Jan F 51.2 51.2
09:30 GBP Services PMI Jan F 53.5 53.3
10:00 EUR Eurozone PPI M/M Dec 3.00% 1.80%
10:00 EUR Eurozone PPI Y/Y Dec 26.60% 23.70%
12:00 GBP BoE Interest Rate Decision 0.50% 0.25%
12:00 GBP BoE Asset Purchase Facility 895B 895B
12:00 GBP MPC Official Bank Rate Votes 7--0--2 8--0--1
12:00 GBP MPC Asset Purchase Facility Votes 0--0--9 0--0--9
12:30 USD Challenger Job Cuts Y/Y Jan -75.30%
12:45 EUR ECB Interest Rate Decision 0.00% 0.00%
13:30 EUR ECB Press Conference
13:30 USD Initial Jobless Claims (Jan 28) 264K 260K
13:30 USD Nonfarm Productivity Q4 P 2.80% -5.20%
13:30 USD Unit Labor Costs Q4 P 1.50% 9.60%
14:45 USD Services PMI Jan F 50.9 50.9
14:45 USD PMI Composite Jan 50.8 50.8
15:00 USD ISM Services Prices Paid Jan 83 82.5
15:00 USD ISM Services PMI Jan 58.7 62
15:00 USD Factory Orders M/M Dec 0.10% 1.60%
15:30 USD Natural Gas Storage -280B -219B