Dollar Woes Persist, Aussie Capitalizes on Copper's Revival
| Action Insight Daily Report 7-14-23 |
Dollar Woes Persist, Aussie Capitalizes on Copper's Revival |
Dollar is still facing much broad-based pressure as risk-on sentiment continues to dominate the markets. A slight recovery could be on the cards due to pre-weekend profit-taking, although this largely hinges on the inflation expectation figures in the forthcoming University of Michigan Consumer Sentiment report. Should the inflation expectations display a substantial decrease, this could provide a further boost to risk appetite and potentially lead to another downturn for Dollar, before getting an opportunity to stabilize next week. As far as this week's currency performance is concerned, Swiss Franc maintains its position as the strongest currency, outpacing even the persistently robust Japanese Yen. New Zealand and Australian dollars follow closely behind, despite their impressive runs. Canadian Dollar follows suit with Dollar as the second-weakest, while the Euro and Sterling trail somewhat behind. From a technical perspective, CHF/JPY stands out as an interesting pair to watch in order to gauge whether Swiss Franc can continue its domination over Yen. 200% projection of 137.40 to 147.58 from 140.21 at 160.57 was a resistance that limited CHF/JPY's advance. However, the pullback has been quite shallow, making it seem negligible in comparison to the steep decline observed in other Yen crosses. Outlook will stay bullish as long as 156.97 support holds. Firm break of 161.61 resistance will pave the way to 261.8% projection at 166.86. In Asia, at the time of writing, Nikkei is up 0.08%. Hong Kong HSI is up 0.35%. China Shanghai SSE is up 0.27%. Singapore Strait Times is up 0.18%. Japan 10-year JGB yield is up 0.0096 at 0.477. Overnight, DOW rose 0.14%. S&P 500 rose 0.85%. NASDAQ rose 1.58%. 10-year yield dropped -0.10 to 3.761. |
GBP/USD Daily Outlook Daily Pivots: (S1) 1.3032; (P) 1.3087; (R1) 1.3190; More... Intraday bias in GBP/USD remains on the upside for the moment. Current rally is part of the up trend from 1.0351. Next target is 100% projection of 1.0351 to 1.2445 from 1.1801 at 1.3895.On the downside, below 1.3043 minor support will turn intraday bias neutral first. But retreat should be contained by 1.2847 resistance turned support to bring another rally. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 04:30 | JPY | Industrial Production M/M May F | -2.20% | -1.60% | -1.60% | | 06:30 | CHF | Producer and Import Prices M/M Jun | 0.20% | -0.30% | | 06:30 | CHF | Producer and Import Prices Y/Y Jun | -0.30% | | 08:00 | EUR | Italy Trade Balance (EUR) May | 1.45B | 0.32B | | 09:00 | EUR | Eurozone Trade Balance (EUR) May | -10.3B | -7.1B | | 12:30 | CAD | Manufacturing Sales M/M May | 0.80% | 0.30% | | 12:30 | USD | Import Price Index M/M Jun | -0.60% | | 14:00 | USD | Michigan Consumer Sentiment Index Jul P | 65.5 | 64.4 |
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