Euro Leads Gains as Dollar Struggles Post-FOMC; BoE and SNB Decisions Take Center Stage

Action Insight Daily Report 3-23-23

Euro Leads Gains as Dollar Struggles Post-FOMC; BoE and SNB Decisions Take Center Stage

Dollar faced broad sell-off overnight after the less hawkish than expected Fed rate hike and press conference, with Euro emerging as the biggest winner against the greenback. Sterling and Swiss Franc followed suit, while Australian and New Zealand dollars also strengthened but lagged on a weekly basis.

Attention now shifts to BoE and SNB rate decisions. Both are expected to continue their rate hike cycles, but uncertainties remain about the path ahead. Any outcome perceived as less hawkish could push Euro further up, aided by an extended rally in EUR/CHF and a stronger rebound in EUR/GBP.

Technically, EUR/GBP's break of 0.8842 minor resistance affirm the case that corrective fall from 0.8977 has completed with three waves down to 0.8717, after drawing support from 0.8720. Further break of 0.8924 resistance will send the cross through 0.8977 to resume whole rise from 0.8545 (2022 low).

In Asia, Nikkei closed down -0.17%. Hong Kong HSI is up 1.74%. China Shanghai SSE is up 0.48%. Singapore Strait Times is down -0.14%. Japan 10-year JGB yield is down -0.0295 at 0.305. Overnight, DOW dropped -1.63%. S&P 500 dropped -1.65%. NASDAQ dropped -1.60%. 10-year yield dropped -0.106 to 3.500.

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

EUR/USD Daily Outlook

Daily Pivots: (S1) 1.0772; (P) 1.0842; (R1) 1.0926; More...

EUR/USD's rise from 1.0515 accelerates higher and intraday bias stays on the upside for retesting 1.1032 high. Decisive break there will resume whole up trend from 0.9534 and target 1.1273 fibonacci level next. On the downside, below 1.0787 minor support will turn intraday bias neutral and bring consolidations first, before staging another rally.

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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
08:30 CHF SNB Interest Rate Decision 1.50% 1.00%
12:00 GBP BoE Rate Decision 4.25% 4.00%
12:00 GBP MPC Official Bank Rate Votes 7--0--2 7--0--2
12:30 USD Current Account (USD) Q4 -217B
12:30 USD Initial Jobless Claims (Mar 17) 195K 192K
14:00 USD New Home Sales Feb 650K 670K
14:30 USD Natural Gas Storage -58B