Dollar Strengthens Amidst Global Tech Selloff and Treasury Yield Recovery
| Action Insight Mid-Day Report 1-3-24 |
Dollar Strengthens Amidst Global Tech Selloff and Treasury Yield Recovery |
Dollar is having a renewed attempt to extend its near-term rebound, buoyed by mild risk-off sentiment prevalent in Europe and US premarkets. This resurgence in the greenback's strength coincides with ongoing selloff in technology stocks, which has now extended to major Asian markets, with key indexes in South Korea and Taiwan closing down. Additionally, Dollar is finding support from a recovery in the benchmark 10-year treasury yield, which appears to be on track to test the 4% psychological level. In terms of currency performance, Japanese Yen is currently the weakest for the day, followed by Australian Dollar and Swiss Franc. Euro and Canadian Dollar are mixed while British Pound is demonstrating some resilience. The direction of the next move for these currencies is highly contingent on the forthcoming release of FOMC minutes. Market participants are keenly awaiting insights into Fed's discussions on the planned rate cuts for this year, including specifics on the timing of the initial cut... |
EUR/USD Mid-Day Outlook Daily Pivots: (S1) 1.0901; (P) 1.0978; (R1) 1.1019; More... EUR/USD's break of 1.0929 minor support confirms short term topping at 1.1138, on bearish divergence condition in 4H MACD. Intraday bias is back on the downside for 1.0772 support. Sustained break there will argue that whole rise from 1.0447 has completed, and break deeper fall back to this support. For now, risk will stay mildly on the downside as long as 55 4H EMA (now at 1.0998) holds, in case of recovery. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 08:30 | CHF | Manufacturing PMI Dec | 43 | 43 | 42.1 | | 08:55 | EUR | Germany Unemployment Change Dec | 5K | 20K | 22K | | 08:55 | EUR | Germany Unemployment Rate Dec | 5.90% | 5.90% | 5.90% | 5.80% | | 15:00 | USD | ISM Manufacturing PMI Dec | 47.1 | 46.7 | | 15:00 | USD | ISM Manufacturing Prices Paid Dec | 50 | 49.9 | | 15:00 | USD | ISM Manufacturing Employment Index Dec | 45.8 | | 19:00 | USD | FOMC Minutes |
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