Dollar Firm But Lacks Momentum, FOMC Hike Awaited

Action Insight Daily Report 9-21-22

Dollar Firm But Lacks Momentum, FOMC Hike Awaited

Dollar is staying as the strongest one for the week as markets await FOMC rate hike. Yet, the greenback is still held below last week's high against most counter parts except Loonie and Kiwi. Swiss Franc is also resilient while markets are speculation a larger than expected hike by SNB later on Thursday. Commodity currencies are generally weak on risk aversion while Yen is pressured by rising major yields. Euro and Sterling are mixed for now.

Technically, USD/CAD's break of 1.3343 temporary top overnight was a sign of rally resumption in Dollar. But more breakouts are needed to confirm the greenback's strength. The immediate levels to watch are 144.98 resistance in USD/JPY, and 1.1349 temporary low in GBP/USD, and 0.6680 support in AUD/USD. A more distant level is 0.9863 low in EUR/USD.

In Asia, at the time of writing, Nikkei is down -1.17%. Hong Kong HSI is down -1.24%. China Shanghai SSE is down -0.04%. Singapore Strait Times is up 0.06%. Japan 10-year JGB yield is down -0.0042 at 0.256. Overnight, DOW dropped -1.01%. S&P 500 dropped -1.13%. NASDAQ dropped -0.95%. 10-year yield rose 0.081 to 3.571.

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

USD/CAD Daily Outlook

Daily Pivots: (S1) 1.3272; (P) 1.3324; (R1) 1.3419; More...

USD/CAD's rally resumed after brief consolidations and intraday bias is back on the upside. Current up trend should target medium term fibonacci level at 1.3650. On the downside, break of 1.3225 minor support is needed to indicate short term topping. Otherwise, outlook will stay bullish in case of retreat.

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EURUSD | USDJPY | GBPUSD | USDCHF | AUDUSD | USDCAD

EURJPY | EURGBP | EURCHF | EURAUD | GBPJPY

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Fundamental Analysis | Technical Analysis
In-depth Reports
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September Flashlight for the FOMC Blackout Period
BoE Preview: Another 50bp Rate Hike in Store
US Inflation and Its Cost to Test the FOMC's Resolve
Economic Calendar
GMT Ccy Events Actual Forecast Previous Revised
00:30 AUD Westpac Leading Index M/M Aug -0.10% -0.15%
06:00 GBP Public Sector Net Borrowing (GBP) Aug 7.5B 4.2B
14:00 USD Existing Home Sales Aug 4.70M 4.81M
14:30 USD Crude Oil Inventories 2.4M
18:00 USD Fed Interest Rate Decision 3.25% 2.50%
18:30 USD FOMC Press Conference