Sterling Supported by UK Tax Measures Reversal, Yen Weakness Continues
| Action Insight Mid-Day Report 10-17-22 |
Sterling Supported by UK Tax Measures Reversal, Yen Weakness Continues |
Sterling is trading as the strongest one for today so far, even though there is not clear follow through buying except versus Yen. The Pound is supported by UK Finance Minister Jeremy Hunt's decision that the government will reverse "almost all" the tax measures in the Growth Plan announced just three weeks ago. Yen's decline continues but selloff is mainly seen against European majors. Dollar is trading on the soft side, and would remain so if US stocks could extend the pre-session rebound. Technically, both EUR/JPY and GBP/JPY are edging closer to near term resistance at 145.62 and 169.10 respectively. Decisive break of these levels will confirm larger up trend resumption. Given that USD/JPY bulls are on the guard of Japan's intervention at around 150 handle, rally in EUR/JPY and GBP/JPY could help push EUR/USD and GBP/USD higher. But, the prerequisite is there is no clear deterioration in sentiment in stock and bond markets. In Europe, at the time of writing, FTSE is up 0.83%. DAX is up 1.42%. CAC is u 1.21%. Germany 10-year yield is down -0.123 at 2.230. Earlier in Asia, Nikkei dropped -1.16%. Hong Kong HSI rose 0.15%. China Shanghai SSE rose 0.42%. Singapore Strait Times dropped -0.78%. Japan 10-year JGB yield dropped -0.0012 to 0.253. |
GBP/JPY Mid-Day Outlook Daily Pivots: (S1) 165.15; (P) 166.18; (R1) 167.34; More... GBP?JPY's rally continues today and intraday bias stays on the upside for 169.10. Firm break there will target 61.8% projection of 148.93 to 165.69 from 159.71 at 170.06, and then 100% projection at 176.47. On the downside, below 165.00 minor support will turn Intraday bias neutral first. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 21:30 | NZD | Business NZ PSI Sep | 55.8 | 58.6 | | 23:01 | GBP | Rightmove House Price Index M/M Oct | 9 | 0.70% | | 04:30 | JPY | Tertiary Industry Index M/M Aug | 0.70% | 0.40% | -0.60% | | 04:30 | JPY | Industrial Production M/M Aug F | 3.40% | 2.70% | 2.70% | | 12:30 | USD | Empire State Manufacturing Index Oct | -9.1 | -1 | -1.5 | | 14:30 | CAD | BoC Business Outlook Survey |
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