BoE and SNB Rate Hikes Add Spice, But Lack Impact
| Action Insight Daily Report 6-23-23 |
Dollar Rebounds on Short Covering, Yen Extending Decline |
Dollar saw a significant rebound overnight, a rally that carried on into the Asian trading session today. This surge is mainly attributable to short covering, particularly as central bank rate hikes this week failed to drive an extended selloff in the greenback. In fact, Dollar is currently the second strongest performer for the week, closely trailing Canadian. However, the possibility of a shift in this ranking by the week's end remains on the table. Japanese Yen, on the other hand, is experiencing a momentum pick-up in its decline. Yet, the selloff seems mostly concentrated against Dollar. The Japanese currency currently ranks as the third worst performer, following the Australian and New Zealand Dollars. Australian Dollar is being dampened by risk aversion within Asia, reflected in its joint weakening with the Hong Kong's HSI. This shared downturn is being interpreted as a lack of confidence vote in the Chinese economy. As for European majors, they are currently mixed, with Sterling showing a slight lower hand. Both Euro and Pound will be looking to today's PMI data for further inspiration. Meanwhile, USD/JPY's rally is worth a note. Purely from a technical standpoint, break of the medium term channel resistance suggests upside acceleration. Clearing of 61.8% retracement of 151.93 to 127.20 at 142.48 could also set the stage for further rise back to retest 151.93 high. Nevertheless, it's unsure at what level Japan will intervene. In Asia, Nikkei closed down -1.45%. Hong Kong HSI is down -1.64%. Singapore Strait Times is down -0.70%. Japan 10-year JGB yield is down -0.0044 at 0.374. Overnight, DOW rose 0.37%. S&P 500 rose 0.95%. NASDAQ rose 0.95%. 10-year yield rose 0.076 to 3.799. |
EUR/USD Daily Outlook Daily Pivots: (S1) 1.0933; (P) 1.0972; (R1) 1.0995; More... EUR/USD's break of 1.0891 support suggests short term topping at 1.1011, on bearish divergence condition in 4H MACD. Fall from 1.1011 is seen as the third leg of the corrective pattern from 1.1094. Intraday bias is back on the downside for 55 D EMA (now at 1.0838). Firm break there will target 1.0634 support and below. Nevertheless, rebound from current level, followed by break of 1.1011 will target a test on 1.1094 high instead. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 23:00 | AUD | Manufacturing PMI Jun P | 48.6 | 48.4 | | 23:00 | AUD | Services PMI Jun P | 50.7 | 52.1 | | 23:01 | GBP | GfK Consumer Confidence Jun | -24 | -26 | -27 | | 23:30 | JPY | National CPI Y/Y May | 3.20% | 3.50% | | 23:30 | JPY | National CPI Core Y/Y May | 3.20% | 3.10% | 3.40% | | 23:30 | JPY | National CPI Core-Core Y/Y May | 4.30% | 4.10% | | 00:30 | JPY | Manufacturing PMI Jun P | 49.8 | 50.2 | 50.6 | | 06:00 | GBP | Retail Sales M/M May | 0.30% | -0.20% | 0.50% | | 07:15 | EUR | France Manufacturing PMI Jun P | 45.2 | 45.7 | | 07:15 | EUR | France Services PMI Jun P | 52.1 | 52.5 | | 07:30 | EUR | Germany Manufacturing PMI Jun P | 43.6 | 43.2 | | 07:30 | EUR | Germany Services PMI Jun P | 56.3 | 57.2 | | 08:00 | EUR | Eurozone Manufacturing PMI Jun P | 44.9 | 44.8 | | 08:00 | EUR | Eurozone Services PMI Jun P | 54.5 | 55.1 | | 08:30 | GBP | Manufacturing PMI Jun P | 46.8 | 47.1 | | 08:30 | GBP | Services PMI Jun P | 54.9 | 55.2 | | 13:45 | USD | Manufacturing PMI Jun P | 48.5 | 48.4 | | 13:45 | USD | Services PMI Jun P | 54 | 54.9 |
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