Dollar Soars on Sky-High Yields, Gold Plummets
| Action Insight Daily Report 9-28-23 |
Dollar Soars on Sky-High Yields, Gold Plummets |
Dollar's strength remains unabated, particularly against its European counterparts and Yen. The greenback rose alongside 10-year yield, which soared past the 4.6% mark overnight, a level unseen in over 15 years. The surging global treasury yields are a clear indicator of the market's expectation for a prolonged period of restrictive monetary policies by central banks across the globe. This comes as the market grapples with the looming shadow of a potential U.S. government shutdown, adding another layer of complexity to the fiscal equation. However, this bullish momentum for Dollar is somewhat stymied against commodity currencies. Canadian Dollar emerging as the second strongest for the week so far, spurred by soaring oil prices. New Zealand Dollar is not far behind, buoyed by speculation of another interest rate hike by RBNZ in the fourth quarter. Conversely, the Australian Dollar trails the pack among its commodity-based peers. Swiss Franc continues its underperformance against Euro and Sterling. Yen paints a mixed picture, as Japanese authorities seem to be adeptly employing verbal interventions, effectively slowing the currency's decline by putting potential Yen sellers on alert. Technically, Gold's accelerated decline confirms resumption of whole down trend from 2062.95. Near term outlook will now stay bearish as long as 1900.81 support turned resistance holds. Next target is 61.8% projection of 2062.95 to 1892.76 from 1947.21 at 1842.03. This decline from 2062.95 is viewed as a medium term move inside the long term pattern from 2074.84 (2020 high). Break of 1842.03 will target 100% projection at 1777.02 and below. In Asia, Nikkei closed down -1.55%. Hong Kong HSI is down -1.20%. China Shanghai SSE is up 0.17%. Singapore Strait Times is up 0.13%. Japan 10-year JGB yield is up 0.0124 at 0.752. Overnight, DOW dropped -0.20%. S&P 500 rose 0.02%. NASDAQ rose 0.22%. 10-year yield rose 0.068 to 4.626. |
USD/CHF Daily Outlook Daily Pivots: (S1) 0.9162; (P) 0.9193; (R1) 0.9245; More.... USD/CHF's rally continues and hit as high as 0.9224. Intraday bias stays on the upside for 0.9439 resistance next. On the downside, below 0.9152 minor support will turn intraday bias neutral and bring consolidations, before staging another rally. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 00:00 | NZD | ANZ Business Confidence Sep | 1.5 | -3.7 | | 01:30 | AUD | Retail Sales M/M Aug | 0.20% | 0.30% | 0.50% | | 08:00 | EUR | ECB conomic Bulletin | | 09:00 | EUR | Eurozone Economic Sentiment Indicator Sep | 92.5 | 93.3 | | 09:00 | EUR | Eurozone Industrial Confidence Sep | -10.5 | -10.3 | | 09:00 | EUR | Eurozone Services Sentiment Sep | 3.5 | 3.9 | | 09:00 | EUR | Eurozone Consumer Confidence Sep F | -17.8 | -17.8 | | 12:00 | EUR | Germany CPI M/M Sep P | 0.30% | 0.30% | | 12:00 | EUR | Germany CPI Y/Y Sep P | 4.60% | 6.10% | | 12:30 | USD | Initial Jobless Claims (Sep 22) | 200K | 201K | | 12:30 | USD | GDP Annualized Q2 F | 2.30% | 2.10% | | 12:30 | USD | GDP Price Index Q2 F | 2.00% | 2.00% | | 14:00 | USD | Pending Home Sales M/M Aug | 0.20% | 0.90% | | 14:30 | USD | Natural Gas Storage | 90B | 64B |
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