Euro Gains as ECB Official Signals More Rate Hikes Ahead, Yen Broadly Pressured

Action Insight Mid-Day Report 3-29-23

Euro Gains as ECB Official Signals More Rate Hikes Ahead, Yen Broadly Pressured

Euro is trading mildly higher today following indications from a key ECB official that more interest rate hikes are in the pipeline for the central bank. Concurrently, the improving market sentiment across Europe is lending support to both Sterling and the Swiss Franc. However, Canadian Dollar emerges as the strongest for the day, fueled by robust oil prices.

Conversely, Yen is facing widespread pressure as European benchmark treasury yields continue their rebound. Australian and New Zealand Dollars trail closely behind as the next weakest. Dollar's performance is mixed at the moment, but its recovery against Yen could potentially decelerate the greenback's decline elsewhere.

From a technical standpoint, EUR/JPY's break of the 143.61 resistance level suggests that the pullback from 145.55 has already concluded. Further gains are expected to retest 145.55, with a break there extending the rebound from 137.37. Attention is also focused on GBP/JPY, which is currently pressing 163.32. A break at that level would align the outlook with EUR/JPY and trigger a more substantial rise to 165.99. A firm break there would resume the overall rebound from 155.33.

In Europe, at the time of writing, FTSE is up 0.93%. DAX is up 0.90%. CAC is up 1.26%. Germany 10-year yield is up 0.035 at 2.321. Earlier in Asia, Nikkei rose 1.33%. Hong Kong HSI rose 2.06%. China Shanghai SSE dropped -0.16%. Singapore Strait Times rose 0.22%. Japan 10-year JGB yield dropped -0.077 to 0.307.

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

EUR/JPY Mid-Day Outlook

Daily Pivots: (S1) 141.30; (P) 141.73; (R1) 142.40; More....

EUR/JPY's break of 143.61 resistance now argues that pull back form 15.55 has completed at 138.81 already. Intraday bias is back on the upside for 145.55 resistance first. Break there will resume the whole rebound from 137.37 and target a test on 148.38 high. On the downside, though, below 142.21 minor support will mix up the outlook again and turn intraday bias neutral.

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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
00:30 AUD Monthly CPI Y/Y Feb 6.80% 7.20% 7.40%
06:00 EUR Germany Gfk Consumer Confidence Apr -29.5 -29 -30.5 -30.6
08:00 CHF Credit Suisse Economic Expectations Mar -41.3 -12.3
08:30 GBP Mortgage Approvals Feb 44K 42K 40K
08:30 GBP M4 Money Supply M/M Feb -0.40% 0.90% 1.30% 1.20%
13:00 CHF SNB Quarterly Bulletin
14:00 USD Pending Home Sales M/M Feb -2.20% 8.10%
14:30 USD Crude Oil Inventories 1.8M 1.1M