Dollar Recovery Short-Lived Despite Hawkish Fed Minutes
Action Insight Daily Report 5-26-22

Dollar Recovery Short-Lived Despite Hawkish Fed Minutes

The recovery in Dollar and Yen appeared to be rather short-lived, as overall risk sentiment was steady. FOMC minutes affirmed market expectations of 50bps rate hikes ahead, which is not news. That triggered little reaction in the greenback. As for today, Euro is regaining some ground together with Swiss Franc. New Zealand Dollar is the weaker one with Yen. But Dollar is staying as the worst performer for the week.

Technically, one focus is whether EUR/CHF would break through 1.0228 temporary low to resume the fall from 1.0513. If happens, that could set up EUR/CHF further fall back towards parity. That might also drag Euro down in other pairs, in particular EUR/JPY, which is still staying in the corrective pattern from 139.99.

In Asia, at the time of writing, Nikkei is up 0.08%. Hong Kong HSI is down -0.13%. China Shanghai SSE is up 0.65%. Singapore Strait Times is up 0.81%. Japan 10-year JGB yield is up 0.15 at 0.227. Overnight, DOW rose 0.60%. S&P 500 rose 0.95%. NASDAQ rose 1.51%. 10-year yield dropped -0.011 to 2.749.

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

GBP/USD Daily Outlook

Daily Pivots: (S1) 1.2510; (P) 1.2551; (R1) 1.2620; More..

GBP/USD's recovery from 1.2154 extends higher but stays below 1.2637 resistance. Intraday bias remains neutral for the moment. On the upside, firm break of 1.2637 resistance will bring stronger rebound to 55 day EMA (now at 1.2759). On the downside, below 1.2329 minor support will retain near term bearishness and bring retest of 1.2154 first. Break there will resume larger down trend from 1.4248.

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EURUSD | USDJPY | GBPUSD | USDCHF | AUDUSD | USDCAD

EURJPY | EURGBP | EURCHF | EURAUD | GBPJPY

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Technical Outlook and Review

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EURCAD Wave Analysis

EURGBP Wave Analysis

Fed Reiterates its Commitment to Bringing Inflation Back to Target

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