Risk Sentiment Turns Sour ahead of US CPI
Action Insight Daily Report 6-10-22

Risk Sentiment Turns Sour ahead of US CPI

Euro's post ECB rally was very short-lived, while market turned into risk-off mode later in US session. Negative sentiment continues in Asia today as US consumer inflation data is awaited. So far, Sterling is the strongest one for the week followed by Dollar, and then Canadian. Yen is the overwhelming loser, extending recent down trend of extended rally in global benchmark yields. Swiss Franc is second weakest even though it rebounds against Euro.

Technically, EUR/USD's breach of 1.0626 minor support is a bearish sign. Sustained trading below this level will likely bring retest of 1.0348 low. USD/CAD's breach of 1.2685 minor resistance also suggest that Dollar is on the way up for the near term. To confirm this development, attention will be on 1.2429 minor support in GBP/USD, and 0.7034 minor support in AUD/USD.

In Asia, Nikkei closed down -1.43%. Hong Kong HSI is up 0.01%. China Shanghai SSE is up 1.11% Singapore Strait Times is down -0.84%. Japan 10-year JGB yield is up 0.0026 at 0.253. Overnight, DOW dropped -1.94%. S&P 500 dropped -2.38%. NASDAQ dropped -2.75%. 10-year yield rose 0.015 to 3.044

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

EUR/USD Daily Outlook

Daily Pivots: (S1) 1.0561; (P) 1.0668 (R1) 1.0724; More...

EUR/USD's breach of 1.0626 minor support argues that rebound from 1.0348 has completed at 1.0786 already, after multiple rejection by 55 day EMA. Intraday bias is back on the downside for retesting 1.0348 low, and more importantly 1.0339 long term support. On the upside, though, break of 1.0786 will resume the rebound from 1.0348 to 1.1112 fibonacci resistance.

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EURUSD | USDJPY | GBPUSD | USDCHF | AUDUSD | USDCAD

EURJPY | EURGBP | EURCHF | EURAUD | GBPJPY

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GMT Ccy Events Actual Forecast Previous Revised
22:45 NZD Manufacturing Sales Q1 1.20% 8.20% 11.90%
23:50 JPY PPI Y/Y May 9.10% 9.80% 10.00% 9.80%
01:30 CNY CPI Y/Y May 2.10% 2.50% 2.10%
01:30 CNY PPI Y/Y May 6.40% 6.50% 8.00%
08:00 EUR Italy Industrial Output M/M Apr -1.60% 0.00%
12:30 CAD Net Change in Employment May 28.5K 15.3K
12:30 CAD Unemployment Rate May 5.20% 5.20%
12:30 USD CPI M/M May 0.70% 0.30%
12:30 USD CPI Y/Y May 8.20% 8.30%
12:30 USD CPI Core M/M May 0.50% 0.60%
12:30 USD CPI Core Y/Y May 5.90% 6.20%
14:00 USD Michigan Consumer Sentiment Index Jun P 56.9 58.4