Dollar Jumps as Robust NFP Gives Greenlight to Aggressive Fed

Action Insight Mid-Day Report 10-7-22

Dollar Jumps as Robust NFP Gives Greenlight to Aggressive Fed

Dollar rises broadly after US published another set of robust non-farm payroll job data. As Fed got a nod from the report for continuing its aggressive tightening, US stock futures are trading knocked down while treasury yields jump. Canadian Dollar is also lifted slightly by solid employment data too. In immediate actions, Euro and Swiss Franc seem to suggest most, but Aussie could quickly catch up if risk-off sentiment intensifies. Meanwhile, watch out for intervention by Japan if Yen selling tries to take off.

In Europe, at the time of writing, FTSE is flat. DAX is down -0.52%. CAC is down -0.33%. Germany 10-year yield is up 0.117 at 2.203. Earlier in Asia, Nikkei dropped -0.71%. Hong Kong HSI dropped -1.51%. Singapore Strait Times dropped -0.18%. Japan 10-year JGB yield rose 0.007 to 0.254.

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

EUR/USD Mid-Day Outlook

Daily Pivots: (S1) 0.9745; (P) 0.9835; (R1) 0.9883; More...

Immediate focus is now on 0.9734 minor support in EUR/USD. Firm break there will argue that larger down trend is ready to resume through 0.9534. Next target is 100% projection of 1.0368 to 0.9534 from 0.9998 at 0.9163. For now, risk will stay on the downside as long as 0.9998 resistance holds, in case of recovery.

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EURUSD | USDJPY | GBPUSD | USDCHF | AUDUSD | USDCAD

EURJPY | EURGBP | EURCHF | EURAUD | GBPJPY

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Economic Calendar
GMT Ccy Events Actual Forecast Previous Revised
23:30 JPY Labor Cash Earnings Y/Y Aug 1.70% 1.40% 1.80%
23:30 JPY Overall Household Spending Y/Y Aug 5.10% 6.80% 3.40%
05:00 JPY Leading Economic Index Aug P 100.90% 99.20% 98.90%
05:45 CHF Unemployment Rate Sep 2.10% 2.10% 2.10%
06:00 EUR Germany Import Price Index M/M Aug 4.30% 2.20% 1.40%
06:00 EUR Germany Retail Sales M/M Aug -1.30% -1.00% 1.90%
06:45 EUR France Trade Balance (EUR) Aug -15.3B -13.2B -14.5B -14.8B
07:00 CHF Foreign Currency Reserves (CHF) Sep 807B 860B 859B
08:00 EUR Italy Retail Sales M/M Aug -0.40% 1.00% 1.30%
12:30 USD Nonfarm Payrolls Sep 263K 265K 315K
12:30 USD Unemployment Rate Sep 3.50% 3.70% 3.70%
12:30 USD Average Hourly Earnings M/M Sep 0.30% 0.30% 0.30%
12:30 CAD Net Change in Employment Sep 21.1K 22.5K -39.7K
12:30 CAD Unemployment Rate Sep 5.20% 5.40% 5.40%
14:00 USD Wholesale Inventories Aug F 1.30% 1.30%