Dollar Staying Firm But Lacks Follow-Through Momentum

Action Insight Mid-Day Report 2-6-23

Dollar Staying Firm But Lacks Follow-Through Momentum

Dollar is staying generally firm today but lacks clear-cut momentum to extend last week's rally. Overall sentiment is mildly on the risk-off side, with major European indexes and US futures in red while benchmark treasury yields jump. For now, Yen remains the worst performer for the day, followed by Kiwi and then Aussie. Swiss Franc and Sterling are the stronger ones, followed by the greenback. The question is on whether Dollar could pick up momentum again, probably with help from hawkish Fedspeaks.

Technically, to solidify more upside momentum in Dollar, USD/CHF will need to break through 0.9287 resistance in USD/CHF to confirm short term bottom. The pair might look into GBP/CHF for some help. A rebound could be due as GBP/CHF is already close to support zone of 1.1045/1094. Break of 1.1206 minor resistance with be a sign of bottoming and turn bias back to the upside for 1.1433 resistance. That might give USD/CHF an extra lift.

In Europe, at the time of writing, FTSE is down -0.69%. DAX is down -0.86%. CAC is down -1.31%. Germany 10-year yield is up 0.1007 at 2.291. Earlier in Asia, Nikkei rose 0.67%. Hong Kong HSI dropped -2.02%. China Shanghai SSE dropped -0.76%. Singapore Strait Times rose 0.05%. Japan 10-year JGB yield rose 0.0094 to 0.500.

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

USD/CHF Mid-Day Outlook

Daily Pivots: (S1) 0.9154; (P) 0.9211; (R1) 0.9317; More...

No change in USD/CHF's outlook as intraday bias remains neutral, with focus on 0.9285 resistance. Firm break there will confirm short term bottoming at 0.9058, and bring stronger rise to 0.9407 resistance. On the downside, however, sustained break of 0.9058 will resume larger decline from 1.0146 instead.

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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
00:00 AUD TD Securities Inflation M/M Jan 0.90% 0.20%
07:00 EUR Germany Factory Orders M/M Dec 3.20% 2.00% -5.30% -4.40%
09:30 EUR Eurozone Sentix Investor Confidence Feb -8 -11.8 -17.5
09:30 GBP Construction PMI Jan 48.4 49.5 48.8
10:00 EUR Eurozone Retail Sales M/M Jan -2.70% -2.50% 0.80% 1.20%
15:00 CAD Ivey PMI Jan 42.3 33.4