Dollar Jumps after Strong NFP, 10-Yr Yields Breaks 1.6
Action Insight Mid-Day Report 3-4-21

Dollar Jumps after Strong NFP, 10-Yr Yields Breaks 1.6

Dollar rises further in early US session after much stronger than expected non-farm payroll report. 10-year yield also surges and it's now back above 1.6 handle. The greenback in currently the second strongest for the week, only overwhelmed by the oil supported Canadian Dollar. While Swiss Franc and Yen are trying to recover against others, in particular commodity currencies, both are still the worst performing for the week.

Technically, Dollar's strength is now being more convincing with break of 1.3828 support in GBP/USD and 0.7591 temporary low in AUD/USD. A focus is on whether gold would break through medium term channel support, to accompany further rally in Dollar. Or, gold would stabilize from here and recover first. We'd probably only find out early next week.

In Europe, currently, FTSE is down -0.06%. DAX is down -0.70%. CAC is down -0.58%. Germany 10-year yield is up 0.020 at -0.288. Earlier in Asia, Nikkei dropped -0.23%. Hong Kong HSI dropped -0.47%. China Shanghai SSE dropped -0.04%. Singapore Strait Times dropped -0.03%. Japan 10-year JGB yield dropped -0.0434 to 0.097, back below 0.1 handle.

Full Report Here

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

US Crude Inventory Recorded Biggest Weekly Increase in History
China PMIs Affirm Broad-based Slowdown in Activities
RBA Review - QE Might Increase Further to Curb Rising Yields and Exchange Rate
Central Bank Views | China Watch | Oil N' Gold | Special Topics

GBP/USD Mid-Day Outlook

Daily Pivots: (S1) 1.3844; (P) 1.3930; (R1) 1.3981 More....

GBP/USD's break of 1.3828 support now suggests that deeper correction is underway. Intraday bias is back on the downside for 38.2% retracement of 1.2675 to 1.4240 at 1.3642 first. Break there will target 61.8% retracement at 1.3273 next. On the upside, break of 1.4016 resistance is needed to indicate completion of the pull back. Otherwise, risk will stay mildly on the downside.

Full Report Here

EURUSD | USDJPY | GBPUSD | USDCHF | AUDUSD | USDCAD

EURJPY | EURGBP | EURCHF | EURAUD | GBPJPY

Recommended Readings

Market Morning Briefing: EURJPY Holds Below 130

USD/JPY Weekly Chart: 108.80 Presents Major Resistance

NFP Preview: When Will Jobs Growth Get Back into Gear?

Fed's Silence on Rising Yields Could Reawaken the Dollar

Is Operation Twist in the Fed's future?

Fundamental Analysis | Technical Analysis
In-depth Reports
China PMIs Affirm Broad-based Slowdown in Activities
RBA Board Holds the Line – No Material Change in Policy Stance
Global Yields Catch Up With US Treasuries; Has the Dollar's Rebound Been Thwarted?
Longer-Term Demand/Supply Outlook Remains Supportive of Copper Strength
Economic Calendar
GMT Ccy Events Actual Forecast Previous Revised
21:30 AUD AiG Performance of Services Feb 55.8 54.3
07:00 EUR Germany Factory Orders M/M Jan 1.40% -1.00% -1.90% -2.20%
07:45 EUR France Trade Balance (EUR) Jan -3.9B -3.4B -3.4B -3.6B
08:00 CHF Foreign Currency Reserves (CHF) Feb 914B 896B
09:00 EUR Italy Retail Sales M/M Jan -3.00% -0.60% 2.50% 2.40%
13:30 USD Nonfarm Payrolls Feb 379K 148K 49K 166 K
13:30 USD Unemployment Rate Feb 6.20% 6.40% 6.30%
13:30 USD Average Hourly Earnings M/M Feb 0.20% 0.20% 0.20% 0.10%
13:30 USD Trade Balance (USD) Jan -68.2B -67.5B -66.6B -67 B
13:30 CAD Trade Balance (CAD) Jan 1.4B -1.4B -1.7B -1.98 B
15:00 CAD Ivey PMI Feb 49.2 48.4