Euro Supported by Hawkish ECB, Commodity Currencies Down
| Action Insight Mid-Day Report 1-19-23 |
Euro Supported by Hawkish ECB, Commodity Currencies Down |
Euro is lifted slightly by hawkish comments from ECB officials, as well as the meeting accounts. But overall, it's risk-on sentiment that matters more for now, supporting Yen and Dollar too. Commodity currencies are so far the worst performers, with Aussie also weighed down by poor job data. Sterling and Swiss Franc are currently mixed. Technically, EUR/CAD finally breaks through 1.4591 resistance to resume larger up trend from 1.2867. Further rally is now expected as long as 1.4406 support holds. Next target is 61.8% projection of 1.3270 to 1.4591 from 1.4232 at 1.5048. Let's see if USD/CAD could also pick up momentum towards 1.3704 resistance. In Europe, at the time of writing, FTSE is down -1.20%. DAX is down -1.69%. CAC is down -1.81%. Germany 10-year yield is up 0.063 at 2.088. Earlier in Asia, Nikkei dropped -1.44%. Hong Kong HSI dropped -0.12%. China Shanghai SSE rose 0.49%. Singapore Strait Times dropped -0.41%. Japan 10-year JGB yield dropped -0.0184 to 0.404. |
EUR/USD Mid-Day Outlook Daily Pivots: (S1) 1.0745; (P) 1.0816; (R1) 1.0866; More... EUR/USD is still bounded in consolidation from below 1.0886 and intraday bias stays neutral. Overall outlook will remain bullish as long as 1.0482 support holds. Break of 1.0886 will resume rally from 0.9534 to 61.8% projection of 0.9630 to 1.0733 from 1.0482 at 1.1164 next. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 23:50 | JPY | Trade Balance (JPY) Dec | -1.72T | -1.63T | -1.73T | -1.78T | | 00:01 | GBP | RICS Housing Price Balance Dec | -42% | -30% | -25% | -26% | | 00:30 | AUD | Employment Change Dec | -14.6K | 21.2K | 64.0K | 58.3K | | 00:30 | AUD | Unemployment Rate Dec | 3.50% | 3.40% | 3.40% | 3.50% | | 07:30 | CHF | Producer and Import Prices M/M Dec | -0.70% | -0.40% | -0.50% | | 07:30 | CHF | Producer and Import Prices Y/Y Dec | 3.20% | 3.10% | 3.80% | | 09:00 | EUR | Eurozone Current Account (EUR) Nov | 13.6B | -11.6B | -0.4B | | 12:30 | EUR | ECB Meeting Accounts | | 13:30 | CAD | Wholesale Sales M/M Nov | 0.50% | 2.00% | 2.10% | 1.90% | | 13:30 | USD | Initial Jobless Claims (Jan 13) | 190K | 212K | 205K | | 13:30 | USD | Building Permits Dec | 1.33M | 1.37M | 1.34M | 1.351M | | 13:30 | USD | Housing Starts Dec | 1.382M | 1.36M | 1.43M | 1.401M | | 13:30 | USD | Philadelphia Fed Manufacturing Survey Jan | -8.9 | -11.2 | -13.8 | -13.7 | | 15:30 | USD | Natural Gas Storage | -76B | 11B | | 16:00 | USD | Crude Oil Inventories | -2.1M | 19.0M |
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