Risk Appetite Holds, Dollar Extends Losses Markets Eye PCE into Fridayâs Finish
| Action Insight Daily 6-27-25 |
Risk Appetite Holds, Dollar Extends Losses Markets Eye PCE into Friday’s Finish |
Global risk sentiment remains firm heading into the weekend, with both S&P 500 and NASDAQ pushing near record highs overnight. Asian markets followed suit, with Japan’s Nikkei breaking above the symbolic 40k mark, extending its robust rally driven by AI optimism and strong corporate earnings. The bullish tone persists despite persistent warnings from Fed officials that a July rate cut is unlikely. Instead, Fed’s consistent message of "not now, but likely later" is reinforcing market hopes that easing will resume by fall. Most policymakers continue to emphasize patience due to tariff-related inflation risks, yet concede that inflation appears to be trending back toward target. This dovish tilt later in the year is offering enough support for equity bulls to stay in control. Traders are now squarely focused on May’s US PCE inflation release. A modest rise is expected, with headline PCE set to climb to 2.3% and core PCE to 2.6%. A soft reading would further cement the case for September easing, while any significant surprise to the upside could temporarily dampen sentiment. For now, though, investors appear optimistic that inflation remains manageable....... |
AUD/USD Daily Report Daily Pivots: (S1) 0.6511; (P) 0.6538; (R1) 0.6572; More... AUD/USD's rise from 0.5913 finally resumed by breaking 0.6551 resistance. Intraday bias is back on the upside for 0.6713 fibonacci level. On the downside, below 0.6483 minor support will turn intraday bias neutral first. But near term outlook will now stay bullish as long as 0.6372 support holds, in case of retreat. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 23:30 | JPY | Tokyo CPI Y/Y Jun | 3.10% | 3.40% | | 23:30 | JPY | Tokyo CPI Core Y/Y Jun | 3.10% | 3.40% | 3.60% | | 23:30 | JPY | Tokyo CPI Core-Core Y/Y Jun | 3.10% | 3.30% | | 23:30 | JPY | Unemployment Rate May | 2.50% | 2.50% | 2.50% | | 23:50 | JPY | Retail Trade Y/Y May | 2.20% | 2.40% | 3.30% | 3.50% | | 09:00 | EUR | Eurozone Economic Sentiment Indicator Jun | 95.5 | 94.8 | | 09:00 | EUR | Eurozone Services Sentiment Jun | 1.6 | 1.5 | | 09:00 | EUR | Eurozone Industrial Confidence Jun | -9.9 | -10.3 | | 09:00 | EUR | Eurozone Consumer Confidence Jun F | -15.3 | -15.3 | | 12:30 | CAD | GDP M/M Apr | 0.00% | 0.10% | | 12:30 | USD | Personal Income M/M May | 0.20% | 0.80% | | 12:30 | USD | Personal Spending May | 0.20% | 0.20% | | 12:30 | USD | PCE Price Index M/M May | 0.10% | 0.10% | | 12:30 | USD | PCE Price Index Y/Y May | 2.30% | 2.10% | | 12:30 | USD | Core PCE Price Index M/M May | 0.10% | 0.10% | | 12:30 | USD | Core PCE Price Index Y/Y May | 2.60% | 2.50% | | 14:00 | USD | UoM Consumer Sentiment Jun F | 60.5 | 60.5 | | 14:00 | USD | UoM 1-year Inflation Expectations Jun F | 5.10% | 5.10% |
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