Sterling Surges after BoE Rate Hike, Euro Catching Up after ECB
Action Insight Mid-Day Report 12-16-21

Sterling Surges after BoE Rate Hike, Euro Catching Up after ECB

Sterling rises broadly after BoE surprised the markets by raising interest rates and maintains a hawkish tone. Solid risk-on sentiment as well as strong job data boosts Aussie as the second strongest. Euro is not performing badly after ECB announces to end PEPP net purchases in March. Indeed, the common currency is trying to catch up with the Pound. On the other hand, Dollar is trading broadly lower despite Fed's hawkish turn yesterday. Yen is even weaker while Swiss Franc is not too far behind.

Technically, near term bullishness in Sterling and Aussie is rather apparent with break of resistance levels against Dollar. We'll now see if EUR/USD would break through 1.1382 resistance to give Dollar another punch. 0.9156 support in USD/CHF is another level to watch.

In Europe, at the time of writing, FTSE is up 0.95%. DAX is up 1.54%. CAC is up 1.33%. Germany 10-year yield is up 0.0469 at -0.312. Earlier in Asia, Nikkei rose 2.13%. Hong Kong HSI rose 0.23%. China Shanghai SSE rose 0.75%. Singapore Strait Times rose 0.45%. Japan 10-year JGB yield dropped -0.0048 to 0.045.

Full Report Here

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

BOE Hikes Bank Rate, Surprising the Market Two Months in a Row
Hawkish Fed Anticipates Three or More Rate Hikes Next Year
ECB Preview - Phase-Out of PEPP by March as Scheduled
Central Bank Views | China Watch | Oil N' Gold | Special Topics

GBP/USD Mid-Day Outlook

Daily Pivots: (S1) 1.3196; (P) 1.3239; (R1) 1.3306; More...

GBP/USD's break of 1.3351 support turned resistance indicates that a short term bottom was formed at 1.3158 already. More importantly, it's the first sign that correction from 1.4248 has complete with three waves down to 1.3158, after defending 1.3164 key medium term fibonacci level. Intraday bias is back on the upside for 1.3570 support turned resistance first. Firm break there will affirm this bullish case. On the downside, however, sustained break of 1.3164 will carry larger bearish implications.

Full Report Here

EURUSD | USDJPY | GBPUSD | USDCHF | AUDUSD | USDCAD

EURJPY | EURGBP | EURCHF | EURAUD | GBPJPY

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Fundamental Analysis | Technical Analysis
In-depth Reports
Hawkish Fed Anticipates Three or More Rate Hikes Next Year
Fed Research Review: Catching Up to Reality – First Rate Hike Likely in May
Economic Calendar
GMT Ccy Events Actual Forecast Previous Revised
21:45 NZD GDP Q/Q Q3 -3.70% -4.30% 2.80% 2.40%
21:45 NZD GDP Y/Y Q3 -0.30% -1.60% 17.40% 17.90%
22:00 AUD Manufacturing PMI Dec P 57.4 59.2
22:00 AUD Services PMI Dec P 55.1 55.7
23:50 JPY Trade Balance (JPY) Nov -0.49T -0.32T -0.44T -0.42T
00:30 AUD Employment Change Nov 366.1K 200.0K -46.3K -56.0K
00:30 AUD Unemployment Rate Nov 4.60% 5.00% 5.20%
08:15 EUR France Manufacturing PMI Dec P 54.9 55.3 55.9
08:15 EUR France Services PMI Dec P 57.1 55.6 57.4
08:30 EUR Germany Manufacturing PMI Dec P 57.9 57 57.4
08:30 EUR Germany Services PMI Dec P 48.4 51 52.7
08:30 CHF SNB Interest Rate Decision -0.75% -0.75% -0.75%
09:00 EUR Eurozone Manufacturing PMI Dec P 58 57.7 58.4
09:00 EUR Eurozone Services PMI Dec P 53.3 54.2 55.9
09:30 GBP Manufacturing PMI Dec P 57.6 57.6 58.1
09:30 GBP Services PMI Dec P 53.2 57.5 58.5
10:00 EUR Eurozone Trade Balance (EUR) Oct 2.4B 5.7B 6.1B
12:00 GBP BoE Interest Rate Decision 0.25% 0.10% 0.10%
12:00 GBP BoE Asset Purchase Facility 875B 875B 875B
12:00 GBP MPC Official Bank Rate Votes 8--0--1 2--0--7 2--0--7
12:00 GBP MPC Asset Purchase Facility Votes 0--0--9 0--3--6 0--3--6
12:45 EUR Eurozone ECB Interest Rate Decision 0.00% 0.00% 0.00%
13:30 EUR ECB Press Conference
13:30 CAD ADP Employment Change Nov 231.8K 65.8K
13:30 CAD Wholesale Sales M/M Oct 1.40% 1.50% 1.00%
13:30 USD Initial Jobless Claims (Dec 10) 206K 192K 184K 188K
13:30 USD Housing Starts Nov 1.68M 1.57M 1.52M
13:30 USD Building Permits Nov 1.71M 1.67M 1.65M
13:30 USD Philadelphia Fed Manufacturing Dec 15.4 30 39
14:15 USD Industrial Production M/M Dec 0.70% 1.60%
14:15 USD Capacity Utilization Dec 76.70% 76.40%
14:45 USD Manufacturing PMI Dec P 58.3
14:45 USD Services PMI Dec P 58
15:30 USD Natural Gas Storage -85B -59B