Yen Selloff Continues, Sterling Rises Ahead of Key Data
| Action Insight Mid-Day Report 2-13-23 |
Yen Selloff Continues, Sterling Rises Ahead of Key Data |
Selloff in Yen continues today even though 10-year JGB yield closed above BoJ's 0.5% cap. Traders are probably positioning for a not-that-hawkish BoJ governor nomination by the government tomorrow. Dollar also softens as major European indexes rise, together with US futures. Sterling firms up ahead of a string of economic data this week, including employment (Tue), CPI (Wed) and retail sales (Fri). Aussie and Kiwi are also trading slightly higher. Euro is mixed for now, even though European Commission projects a better economic outlook with higher growth and lower inflation for this year. Technically, GBP/CHF should be close to complete the corrective pattern from 1.1574. Firm break of 1.1206 minor resistance should have 4 hour 55 EMA taken out too. Bias will be turned back to the upside for 1.1433 resistance first. Sustained break there will raise the chance of resuming larger rally through 1.1574 high. The next few days would be important for the pound, with clearing of 1.1206 as the first step for GBP/CHF. In Europe, at the time of writing, FTSE is up 0.25%. DAX is up 0.46%. CAC is up 0.83%. Germany 10-year yield is up 0.015 at 2.381. Earlier in Asia, Nikkei dropped -0.88%. Hong Kong HSI dropped -0.12%. China Shanghai SSE rose 0.72%. Singapore Strait Times dropped -1.07%. Japan 10-year JGB yield rose 0.0129 to 0.504. |
USD/JPY Mid-Day Outlook Daily Pivots: (S1) 130.21; (P) 131.04; (R1) 132.28; More... Intraday bias in USD/JPY remains on the upside at this point. Break of 132.89 will resume whole rebound from 127.20 short term bottom. Further rally should then be seen to 38.2% retracement of 151.93 to 127.20 at 136.64, even as a correction to the decline from 151.39. For now, further rise is in favor as long as 129.79 support holds, in case of retreat. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 21:30 | NZD | BusinessNZ Services Index | 54.5 | 52.1 | 52 | | 07:30 | CHF | CPI M/M Jan | 0.60% | 0.50% | -0.20% | | 07:30 | CHF | CPI Y/Y Jan | 3.30% | 2.90% | 2.80% |
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