Action Insight Mid-Day Report 10-28-22

Dollar Recovers after Inflation Data, Yen Turns Weak

Dollar rises broadly in early US session. Stubbornly high inflation reading might be a factor. But the recovery could also be due to traders paring their positions ahead of the weekend, and next week's FOMC. Yen is back under some broad based pressure but stays in familiar range. European stocks are mixed, and so are US futures. Markets might start to turn quieter before close.

In Europe, at the time of writing, FTSE is down -0.32%. DAX is down -0.35%. CAC is up 0.04%. Germany 10-year yield is up 0.194 at 2.156. Earlier in Asia, Nikkei dropped -0.88%. Hong Kong HSI dropped -3.66%. China Shanghai SSE dropped -2.21%. Singapore Strait Times rose 1.46%. Japan 10-year JGB yield dropped -0.0110 to 0.242.

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USD/JPY Mid-Day Outlook

Daily Pivots: (S1) 145.62; (P) 147.01; (R1) 147.80; More...

USD/JPY recovers in early US session but outlook is unchanged. Intraday bias stays neutral as corrective pattern from 151.93 would extend. Deeper pull back cannot be ruled out, but downside is expected to be contained by 38.2% retracement of 130.38 to 151.93 at 143.69 to bring rebound. On the upside, above 149.69 minor resistance will bring stronger rebound back towards 151.93 high. But upside should be limited there to continue the corrective pattern.

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EURJPY | EURGBP | EURCHF | EURAUD | GBPJPY

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Economic Calendar

GMT	Ccy	Events	Actual	Forecast	Previous	Revised
23:30	JPY	Tokyo CPI Core Y/Y Oct	3.40%	3.20%	2.80%
23:30	JPY	Unemployment Rate Sep	2.60%	2.50%	2.50%
00:30	AUD	PPI Q/Q Q3	1.90%	1.50%	1.40%
00:30	AUD	PPI Y/Y Q3	6.40%	6.40%	5.60%
03:00	JPY	BoJ Interest Rate Decision	-0.10%	-0.10%	-0.10%
05:30	EUR	France Consumer Spending M/M Sep	1.20%	1.20%	0.00%	0.10%
05:30	EUR	France GDP Q/Q Q3 P	0.20%	0.20%	0.50%
07:00	CHF	KOF Leading Indicator Oct	90.9	93	93.8
08:00	EUR	Germany GDP Q/Q Q3 P	0.30%	-0.20%	0.10%
09:00	EUR	Eurozone Economic Sentiment Indicator Oct	92.5	92.5	93.7	93.6
09:00	EUR	Eurozone Services Sentiment Oct	1.8	3.3	4.9	4.4
09:00	EUR	Eurozone Industrial Confidence Oct	-1.2	-2	-0.4	-0.3
09:00	EUR	Eurozone Consumer Confidence Oct F	-27.6	-27.6	-27.6	-28.8
12:00	EUR	Germany CPI M/M Oct P	0.90%	0.60%	1.90%
12:00	EUR	Germany CPI Y/Y Oct P	10.40%	10.10%	10.00%
12:30	CAD	GDP M/M Aug	0.10%	0.00%	0.10%
12:30	USD	Personal Income M/M Sep	0.40%	0.30%	0.30%	0.40%
12:30	USD	Personal Spending Sep	0.60%	0.40%	0.40%	0.60%
12:30	USD	PCE Price Index M/M Sep	0.30%	0.50%	0.30%
12:30	USD	PCE Price Index Y/Y Sep	6.20%	5.80%	6.20%
12:30	USD	Core PCE Price Index M/M Sep	0.50%	0.50%	0.60%
12:30	USD	Core PCE Price Index Y/Y Sep	5.10%	5.20%	4.90%
12:30	USD	Employment Cost Index Q3	1.20%	1.30%	1.30%
14:00	USD	Pending Home Sales M/M Sep	-5.30%	-2.00%
14:00	USD	Michigan Consumer Sentiment Index Oct F	59.8	59.8