Action Insight Mid-Day Report 4-29-22

Dollar Consolidates Gain after Strong PCE Inflation Data

Lots of important economic data are released today but they're largely ignored. Inflation data from the US and Eurozone are strong. Canada's monthly GDP growth was well above expectation while Eurozone GDP growth turned weaker in Q1. But reactions to them are mild. While the greenback is paring some recent gains, it remains the strongest one for the week, followed by Canadian. Euro is still the worst performer, followed by Sterling and then Swiss Franc. Yen is mixed awaiting the next move.

Technically, Dollar appears to be losing much upside momentum, but there is no sign of a turn around. EUR/USD would probably consolidate above 1.05 handle for a while. But outlook will stay bearish as long as 1.0756 resistance holds. Nevertheless, break of 1.2675 resistance turned support in USD/CAD, if happens, could be an early warning that Dollar is turning into a near term consolidation phase.

In Europe, at the time of writing, FTSE is up 0.60%. DAX is up 1.15%. CAC is up 0.90%. Germany 10-year yield is up 0.0206 at 0.924. Earlier in Asia, Nikkei rose 1.75%. Hong Kong HSI rose 4.01%. China Shanghai SSE rose 2.41%. Singapore Strait Times rose 0.65%. Japan 10-year JGB yield dropped -0.0310 to 0.219.

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EUR/USD Mid-Day Outlook

Daily Pivots: (S1) 1.0460; (P) 1.0512 (R1) 1.0553; More...

A temporary low is formed at 1.0470 with current recovery. Intraday bias in EUR/USD is turned neutral first, for consolidations. Upside of recovery should be limited by 1.0756 support turned resistance to bring fall resumption. On the downside, break of 1.0470 will resume larger down trend to 161.8% projection of 1.1494 to 1.0805 from 1.1184 at 1.0069.

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EURJPY | EURGBP | EURCHF | EURAUD | GBPJPY

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Economic Calendar

GMT	Ccy	Events	Actual	Forecast	Previous	Revised
01:30	AUD	Private Sector Credit M/M Mar	0.40%	0.60%	0.60%
01:30	AUD	PPI Q/Q Q1	1.60%	1.50%	1.30%
01:30	AUD	PPI Y/Y Q1	4.90%	4.20%	3.70%
05:30	EUR	France Consumer Spending M/M Mar	-1.30%	-0.10%	0.90%
05:30	EUR	France GDP Q/Q Q1 P	0.00%	0.30%	0.70%	0.80%
06:00	EUR	Germany Import Price Index M/M Mar	5.70%	3.20%	1.30%
06:30	CHF	Real Retail Sales Y/Y Mar	-6.60%	13.30%	12.80%	12.50%
07:00	CHF	KOF Leading Indicator Apr	101.7	99.3	99.7
08:00	EUR	Germany GDP Q/Q Q1 P	0.20%	0.20%	-0.30%
08:00	EUR	Italy GDP Q/Q Q1 P	-0.20%	-0.20%	0.60%
08:00	EUR	Eurozone M3 Money Supply Y/Y Mar	6.30%	6.20%	6.30%	6.40%
09:00	EUR	Eurozone GDP Q/Q Q1 P	0.20%	0.30%	0.30%
09:00	EUR	Eurozone CPI Y/Y Apr P	7.50%	7.50%	7.40%
09:00	EUR	Eurozone CPI Core Y/Y Apr P	3.50%	3.10%	2.90%
12:30	CAD	GDP M/M Feb	1.10%	0.80%	0.20%
12:30	USD	Personal Income M/M Mar	0.50%	0.40%	0.50%	0.70%
12:30	USD	Personal Spending Mar	1.10%	0.60%	0.20%	0.60%
12:30	USD	PCE Price Index M/M Mar	0.90%	0.50%	0.60%	0.50%
12:30	USD	PCE Price Index Y/Y Mar	6.60%	6.50%	6.40%	6.30%
12:30	USD	Core PCE Price Index M/M Mar	0.30%	0.30%	0.40%	0.30%
12:30	USD	Core PCE Price Index Y/Y Mar	5.20%	5.30%	5.40%	5.30%
12:30	USD	Employment Cost Index Q1	1.40%	1.10%	1.00%
13:45	USD	Chicago PMI Apr	61.5	62.9
14:00	USD	Michigan Consumer Sentiment Index Apr F	65.7	65.7