Sterling Surges, Loonie Dives in Quiet Markets
Action Insight Mid-Day Report 12-22-21

Sterling Surges, Loonie Dives in Quiet Markets

Sterling and Euro are trading broadly higher today, together with Aussie. On the other hand, Yen and Dollar are both under some selling pressure. Rebound in Europe yield is a factor in driving the markets. We'll see if there is further rally in stocks before holidays that could push Dollar and Yen further lower.

Technically, GBP/CAD's rally today should confirm that 1.7111 resistance is firmly taken out. Whole fall from 1.7884 has completed with three waves down to 1.6636. Further rally should be seen to 1.7623 resistance first, and possibly further to retest 1.7884. We'll see if GBP/USD would follow and break through 1.3373 resistance.

In Europe, at the time of writing, FTSE is down -0.02%. DAX is down -0.05%. CAC is up 0.04%. Germany 10-year yield is up 0.0144 at -0.291. Earlier in Asia, Nikkei rose 0.16%. Hong Kong HSI rose 0.57%. China Shanghai SSE dropped -0.07%. Singapore Strait Times rose 0.08%. Japan 10-year JGB yield rose 0.0079 to 0.063.

Full Report Here

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GBP/USD Mid-Day Outlook

Daily Pivots: (S1) 1.3221; (P) 1.3246; (R1) 1.3294; More...

GBP/USD rebounds strongly today but stays below 1.3373 resistance. Intraday bias remains neutral at this point. On the upside, break of 1.3373 will resume the rebound from 1.3158 to to 55 day EMA (now at 1.3423). Sustained break there will be an early sign of bullish reversal and target 1.3570 support turned resistance next. On the downside, however, firm break of 1.3164 medium term fibonacci level will carry larger bearish implication. Fall from 1.4248 should resume and target 161.8% projection of 1.4248 to 1.3570 from 1.3833 at 1.2736.

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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 AUD Westpac Leading Index M/MNov 0.10% 0.20% 0.30%
23:50 JPY BoJ Minutes
07:00 GBP GDP Q/Q Q3 F 1.10% 1.30% 1.30%
07:00 GBP Current Account (GBP) Q3 -24.4B -15.6B -8.6B
13:30 USD GDP Annualized Q3 F 2.30% 2.10% 2.10%
13:30 USD GDP Price Index Q3 F 6.00% 5.90% 5.90%
14:00 CHF SNB Quarterly Bulletin Q4
15:00 USD Existing Home Sales M/M Nov 6.5M 6.34M
15:00 USD Consumer Confidence Dec 111.1 109.5
15:30 USD Crude Oil Inventories -2.4M -4.6M