Solid Data Support Risk Sentiment, Dollar Struggles
Action Insight Mid-Day Report 1-26-23 |
Solid Data Support Risk Sentiment, Dollar Struggles |
US futures trade higher after a batch of solid economic data. Positive risk sentiment are lifting commodity currencies in general, in particular Aussie. Dollar and Yen are turning softer while European majors are mixed, with Euro lagging behind. In the weekly picture, while Aussie is still the strongest, Dollar and Yen are the weakest. Euro is indeed the second best, but it apparently lacks follow through buying. Technically, some attention will remain on EUR/CHF for the rest of the week. Firm break of 0.9992 and 4 hour 55 EMA will indicate that corrective pattern from 1.0095 is already in the third leg, towards 0.9873. Such development could be accompanied by more downside in Euro elsewhere, including against Dollar. In Europe, at the time of writing, FTSE is up 0.48%. DAX is up 0.20%. CAC is up 0.94%. Germany 10-year yield is up 0.0164 at 2.173. Earlier in Asia, Nikkei dropped -0.12%. Hong Kong HSI rose 2.37%. Singapore Strait Times rose 0.73%. Japan 10-year JGB yield rose 0.0212 to 0.465. |
USD/CAD Mid-Day Outlook Daily Pivots: (S1) 1.3345; (P) 1.3387; (R1) 1.3433; More.... USD/CAD's decline resumed by breaking through 1.3320 and intraday bias is back on the downside. Fall from 1.3704 would target 1.3224 key support level. Strong support is still expected from there to bring rebound. But decisive break would carry larger bearish implication. On the upside, above 1.3426 minor resistance will turn intraday bias neutral first. | |
GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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23:50 | JPY | BoJ Summary of Opinions | 23:50 | JPY | Corporate Service Price Index Y/Y Dec | 1.50% | 1.60% | 1.70% | 13:30 | USD | Initial Jobless Claims (Jan 20) | 186K | 211K | 190K | 192K | 13:30 | USD | GDP Annualized Q4 P | 2.90% | 2.80% | 3.20% | 13:30 | USD | GDP Price Index Q4 P | 3.50% | 6.20% | 4.40% | 13:30 | USD | Goods Trade Balance (USD) Dec P | -90.3B | -88.8B | -83.3B | 13:30 | USD | Wholesale Inventories Dec P | 0.10% | 0.50% | 1.00% | 13:30 | USD | Durable Goods Orders Dec | 5.60% | 2.50% | -2.10% | 13:30 | USD | Durable Goods Orders ex Trans Dec | -0.10% | 0.00% | 0.20% | 0.10% | 15:00 | USD | New Home Sales Dec | 615K | 640K | 15:30 | USD | Natural Gas Storage | -79B | -82B |
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