Euro Retreats after ECB Hike, Dollar Recovers after GDP

Action Insight Mid-Day Report 10-27-22

Euro Retreats after ECB Hike, Dollar Recovers after GDP

Euro softens broadly today after ECB delivered 75bps rate hike as widely expected. President Christine Lagarde delivered no specially hawkish message that could give Euro another lift. On the down hand, Dollar is recovering, with some help from better than expected GDP data. But the greenback remains the worst performed followed by Canadian and Swiss Franc. Sterling is the leader.

Technically, EUR/CHF's retreat now suggests that a temporary top is in place at 0.9953, just ahead of parity. Some consolidations could be seen. But another rise will remain in favor as long as 0.9798 resistance turned support holds. Rise from 0.9407 should still resume at a later stage.

In Europe, at the time of writing, FTSE is up 0.17%. DAX is up 0.05%. CAC is down -0.30%. Germany 10-year yield is down -0.102 at 2.014. Earlier in Asia, Nikkei dropped -0.32%. Hong Kong HSI rose 0.72%. China Shanghai SSE dropped -0.55%. Singapore Strait Times rose 0.23%. Japan 10-year JGB yield dropped -0.0055 to 0.253.

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

EUR/USD Mid-Day Outlook

Daily Pivots: (S1) 0.9989; (P) 1.0039; (R1) 1.0134; More...

EUR/USD retreated after hitting 1.0092 and intraday bias is turned neutral first. Overall, rise from 0.9534 is still expected to continue as long as 4 hour 55 EMA (now at 0.9885). Above 1.0092 will resume the rally from 0.9534 to 38.2% retracement of 1.1494 to 0.9534 at 1.0283.

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EURUSD | USDJPY | GBPUSD | USDCHF | AUDUSD | USDCAD

EURJPY | EURGBP | EURCHF | EURAUD | GBPJPY

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00:30 AUD Import Price Index Q/Q Q3 3.00% 0.80% 4.30%
06:00 EUR Germany Gfk Consumer Confidence Nov -41.9 -41.8 -42.5 -42.8
12:15 EUR ECB Main Refinancing Rate 2.00% 2.00% 1.25%
12:30 USD Initial Jobless Claims (Oct 21) 217K 225K 214K
12:30 USD GDP Annualized Q3 P 2.60% 2.40% -0.60%
12:30 USD GDP Price Index Q3 P 4.10% 5.40% 9.10% 9.00%
12:30 USD Durable Goods Orders Sep 0.40% 0.50% -0.20% 0.30%
12:30 USD Durable Goods Orders ex Transportation Sep -0.50% 0.00% 0.20%
12:45 EUR ECB Press Conference
14:30 USD Natural Gas Storage 111B