Markets Tread Water in Slow Day, Sterling Recovering
| Action Insight Mid-Day Report 2-8-23 |
Markets Tread Water in Slow Day, Sterling Recovering |
The markets are quiet today with a light economic calendar and slow news flows. European majors are generally higher, in particular with Sterling and Euro paring some earlier losses. Commodity currencies turned softer, but Yen is the weaker one. Dollar is mixed in between. Trading could remain subdued till Friday when UK GDP and Canadian job data are released. Technically, AUD/NZD resumed near term rally from 1.0469 as supported by the hawkish RBA rate hike. It's now pressing 61.8% projection of 1.0469 to 1.0935 from 1.0735 at 1.1023. Sustained break there could prompt upside acceleration to 100% projection at 1.1201. However, rejection by 1.1023, followed by break of 1.0885 will argue that the rebound has completed, and bring deeper fall to 1.0735 support and possibly below. In Europe, at the time of writing, FTSE is up 0.66%. DAX is up 0.81%. CAC is up 0.47%. Germany 10-year yield is up 0.31 at 2.374. Earlier in Asia, Nikkei dropped -0.29%. Hong Kong HSI dropped -0.07%. China Shanghai SSE dropped -0.49%. Singapore Strait Times rose 0.23%. Japan 10-year JGB yield rose 0.0015 to 0.497. |
GBP/USD Mid-Day Outlook Daily Pivots: (S1) 1.1975; (P) 1.2035; (R1) 1.2109; More... Intraday bias in GBP/USD remains neutral for the moment. Fall from 1.2446, as the third leg of the corrective pattern from 1.2445, could still extend lower. Below 1.1960 will target 1.1840 support and possibly below. But downside should be contained by 38.2% retracement of 1.0351 to 1.2445 at 1.1645 to bring rebound. On the upside, firm break of 4 hour 55 EMA (now at 1.2189) will bring retest of 1.2445/6. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 23:50 | JPY | Bank Lending Y/Y Jan | 3.10% | 2.60% | 2.70% | | 23:50 | JPY | Current Account (JPY) Dec | 1.18T | 1.25T | 1.92T | | 05:00 | JPY | Eco Watchers Survey: Current Jan | 48.5 | 48.1 | 47.9 | | 15:00 | USD | Wholesale Inventories Dec F | 0.10% | 0.10% | | 15:30 | USD | Crude Oil Inventories | 2.0M | 4.1M |
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