Sterling Dips after Dovish BoE Hike, Euro Mixed
Action Insight Mid-Day Report 3-17-22

Sterling Dips after Dovish BoE Hike, Euro Mixed

Sterling dips notably after the dovish rate hike by BoE. Yen is following as second worst for the day, then Dollar. On the other hand, Aussie is leading other commodity currencies higher, support by strong job data. Euro is mixed with Swiss Franc, closely watching developments in Ukraine. In other markets, Gold is attempting a recovery but still kept well below 2000 handle. WTI crude oil is also recovering and it's back above 100 handle.

Technically, with the weakness in Euro, focus will be on EUR/GBP. Above 0.8454 temporary top will resume the rebound from 0.8201. Further break of 0.8476 resistance will be the first sign of bullish trend reversal and bring even stronger rise to 0.8598.

In Europe, at the time of writing, FTSE is up 0.44%. DAX is down -1.04%. CAC is down -0.32%. Germany 10-year yield is up 0.009 at 0.401. Earlier in Asia, Nikkei rose 3.46%. Hong Kong HSI rose 7.04%. China Shanghai SSE rose 1.40%. Singapore Strait Times rose 0.97%. Japan 10-year JGB yield dropped -0.0002 to 0.204.

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

GBP/USD Mid-Day Outlook

Daily Pivots: (S1) 1.3068; (P) 1.3112; (R1) 1.3193; More...

GBP/USD reversed after breaching 1.3193 resistance, but stays above 1.2999 support. Intraday bias remains neutral first and further decline is still in favor. On the downside, break of 1.2999 will resume larger down trend from 1.4248. However, on the upside, firm break of 1.3193 will confirm short term bottoming. Intraday bias will be turned back to the upside for 55 day EMA (now at 1.3374).

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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
21:45 NZD GDP Q/Q Q4 3.00% 3.20% -3.70% -3.60%
23:50 JPY Machinery Orders M/M Jan -2.00% -2.20% 3.60% 3.10%
00:30 AUD Employment Change Feb 77.4K 40.0K 12.9K 28.3K
00:30 AUD Unemployment Rate Feb 4.00% 4.10% 4.20%
07:00 CHF Trade Balance (CHF) Feb 5.95B 4.20B 3.18B 3.07B
10:00 EUR Eurozone CPI Y/Y Feb F 5.90% 5.80% 5.80%
10:00 EUR Eurozone CPI Core Y/Y Feb F 2.70% 2.70% 2.70%
12:00 GBP BoE Interest Rate Decision 0.75% 0.75% 0.50%
12:00 GBP MPC Official Bank Rate Votes 8--0--1 9--0--0 9--0--0
12:30 USD Initial Jobless Claims (Mar 11) 214K 221K 227K 229K
12:30 USD Housing Starts Feb 1.77M 1.70M 1.64M 1.66M
12:30 USD Building Permits Feb 1.86M 1.87M 1.90M
12:30 USD Philadelphia Fed Manufacturing Survey Mar 27.4 15 16
13:15 USD Industrial Production M/M Feb 0.50% 1.40%
14:30 USD Natural Gas Storage -71B -124B