Treasury Yields Spike and Safe-Haven Currencies Ascend
| Action Insight Daily Report 5-30-24 |
Treasury Yields Spike and Safe-Haven Currencies Ascend |
The US financial markets were enveloped in a wave of risk aversion that continued into Asian session, primarily driven by the notable surge in Treasury yields. This uptick in yields followed an auction of seven-year debt that closed with higher than anticipated yields, raising alarms about weakening demand for US Treasuries. This concern was compounded by similar outcomes from auctions of two-year and five-year notes on Tuesday, suggesting a broader hesitation among investors. The currency markets responded to these developments with significant movements, where traditional safe-haven currencies such as Yen, Swiss Franc, and Dollar strengthen broadly, indicating a clear shift towards safer assets. Conversely, Australian Dollar, New Zealand Dollar, Canadian Dollar, and British Pound were all notably weaker, while Euro also saw a slight decline... |
EUR/CHF Daily Outlook Daily Pivots: (S1) 0.9847; (P) 0.9879; (R1) 0.9894; More.... EUR/CHF's break of 0.9880 support confirms short term topping at 0.9928. Intraday bias is back on the downside. Deeper fall would be seen to 38.2% retracement of 0.9563 to 0.9928 at 0.9789. On the upside, break of 0.9880 minor resistance will turn intraday bias neutral first. But risk will now stay mildly on the downside as long as 0.9928 resistance holds, in case of recovery. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 22:45 | NZD | Building Permits M/M Apr | -1.90% | -0.20% | | 01:30 | AUD | Private Capital Expenditure Q1 | 1.00% | 0.60% | 0.80% | | 06:00 | CHF | Trade Balance (CHF) Apr | 3.54B | | 07:00 | CHF | KOF Economic Barometer May | 102.2 | 101.8 | | 07:00 | CHF | GDP Q/Q Q1 | 0.30% | 0.30% | | 08:00 | EUR | Italy Unemployment Apr | 7.30% | 7.20% | | 09:00 | EUR | Eurozone Unemployment Rate Apr | 6.50% | 6.50% | | 09:00 | EUR | Eurozone Economic Sentiment Indicator May | 96 | 95.6 | | 09:00 | EUR | Eurozone Industrial Confidence May | -10.5 | | 09:00 | EUR | Eurozone Services Sentiment May | 6 | | 09:00 | EUR | Eurozone Consumer Confidence May F | -14.3 | -14.3 | | 12:30 | CAD | Current Account (CAD) Q1 | -5.68B | -1.62B | | 12:30 | USD | Initial Jobless Claims (May 24) | 218K | 215K | | 12:30 | USD | GDP Annualized Q1 P | 1.50% | 1.60% | | 12:30 | USD | GDP Price Index Q1 P | 3.10% | 3.10% | | 12:30 | USD | Goods Trade Balance (USD) Apr P | -91.8B | -91.8B | | 12:30 | USD | Wholesale Inventories Apr P | -0.10% | -0.40% | | 14:00 | USD | Pending Home Sales M/M Apr | -0.60% | 3.40% | | 14:30 | USD | Natural Gas Storage | 77B | 78B | | 15:00 | USD | Crude Oil Inventories | -2.0M | 1.8M |
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