Euro Strengthening Mildly While Dollar Awaits CPI
Action Insight Daily Report 9-14-21

Euro Strengthening Mildly While Dollar Awaits CPI

Overall market sentiment is mildly positive with the strong rebound in DOW overnight, followed by slight gain in Nikkei. European majors are having a small edge over the others but Swiss Franc is still clearly lagging behind. Australia Dollar is leading commodity currencies lower for now, after some cautious comments from RBA Governor. Dollar is mixed and awaiting CPI data from the US for some inspirations.

Technically, EUR/CHF is now eye 1.0899 resistance and break will resume the rebound from 1.0694. EUR/JPY is also recovery after drawing support from 129.57 support. Stronger could be seen back to retest 130.73 temporary top. EUR/USD also lost some downside momentum. While deeper fall could be seen as long as 1.1850 minor resistance holds. Break of this resistance will put focus back to last week's high at 1.1908. We'll see if Euro could stage a rally from here.

In Asia, at the time of writing, Nikkei is up 0.48%. Hong Kong HSI is down -0.05%. China Shanghai SSE is up 0.05%. Singapore Strait Times is up 0.48%. Japan 10-year JGB yield is up 0.0045 to 0.051. Overnight, DOW rose 0.76%. S&P 500 rose 0.23%. NASDAQ dropped -0.07%. 10-year yield dropped -0.017 to 1.324.

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EUR/JPY Daily Outlook

Daily Pivots: (S1) 129.68; (P) 129.84; (R1) 130.08; More....

EUR/JPY recovers after touching 129.57 minor support but stays well below 130.73. Intraday bias remains neutral first. On the upside, break of 130.73 will resume the rebound from 127.91 low. That would also reaffirm the case that correction from 134.11 has completed at 127.91. Intraday bias will be turned to the upside for 132.68 resistance next. However, firm break of 129.57 will argue that the rebound has completed, and turn bias back to the downside for retesting 127.91 low.

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EURUSD | USDJPY | GBPUSD | USDCHF | AUDUSD | USDCAD

EURJPY | EURGBP | EURCHF | EURAUD | GBPJPY

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Economic Calendar
GMT Ccy Events Actual Forecast Previous Revised
01:30 AUD House Price Index Q/Q Q2 6.70% 6.20% 5.40%
01:30 AUD NAB Business Confidence Aug -5 -8 -7
01:30 AUD NAB Business Conditions Aug 14 11 10
04:30 JPY Industrial Production M/M Jul F -1.50% -1.50% -1.50%
06:00 GBP Claimant Count Change Aug -71.7K -7.8K
06:00 GBP ILO Unemployment Rate (3M) Jul 4.60% 4.70%
06:00 GBP Average Earnings Including Bonus 3M/Y Jul 8.60% 8.80%
06:00 GBP Average Earnings Excluding Bonus 3M/Y Jul 7.30% 7.40%
06:30 CHF Producer and Import Prices M/M Aug 0.20% 0.50%
06:30 CHF Producer and Import Prices Y/Y Aug 3.30%
10:00 USD NFIB Business Optimism Index Aug 99 99.7
12:30 CAD Manufacturing Sales M/M Jul -1.00% 2.10%
12:30 USD CPI M/M Aug 0.40% 0.50%
12:30 USD CPI Y/Y Aug 5.30% 5.40%
12:30 USD CPI Core M/M Aug 0.30% 0.30%
12:30 USD CPI Core Y/Y Aug 4.20% 4.30%