Swiss Franc and Euro Rise in Mixed Market, Little Reaction to Jobless Claims and BoE
Action Insight Mid-Day Report 5-6-21

Swiss Franc and Euro Rise in Mixed Market, Little Reaction to Jobless Claims and BoE

Swiss Franc and Euro jump in overall mixed markets. There were little reaction to better than expected job data from the US. BoE's slowing of asset purchases, and surprising voting prompted brief rally in the Pound, but there is no follow through momentum. Australian Dollar quickly pared back the losses on increasing tension with China. European indices are hovering between gains an losses while US futures are mixed too. Traders might need to wait for tomorrow's non-farm payroll data before taking a firmer stance.

Technically, though, Dollar is looking vulnerable against Euro and Swiss Franc. With today's recovery, focus will firstly be on 1.2075 minor resistance in EUR/USD. Break will suggest that correction from 1.2149 has completed, and larger up trend is ready to resume. USD/CHF is also pressing 0.9079 temporary low too. Break will resume larger down trend. We'd also watch is gold could finally break through 1800 handle to resume the rise from 1677.69.

In Europe, at the time of writing, FTSE is up 0.16%. DAX is down -0.07%. CAC is up 0.06%. Germany 10-year yield is up 0.008 to -0.217. Earlier in Asia, Nikkei rose 1.80%. Hong Kong HSI rose 0.77%. China Shanghai SSE dropped -0.16%. Singapore Strait Times rose 0.62%. Japan 10-year JGB yield dropped -0.0054 to 0.090.

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EUR/USD Mid-Day Outlook

Daily Pivots: (S1) 1.1985; (P) 1.2006; (R1) 1.2026; More....

Focus is now on 1.2075 minor resistance in EUR/USD with today's recovery. Break there will indicate that pull back from 1.2149 has completed and bring retest of this resistance. Break there will resume rise from 1.1703 to 1.2242/2348 resistance zone. In case of another fall, we'd continue to expect strong support from 38.2% retracement of 1.1703 to 1.2149 at 1.1979 to bring rebound. However, firm break of 1.1979 will bring deeper fall to 61.8% retracement at 1.1873.

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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
22:45 NZD Building Permits M/M Mar 17.90% -18.20% -19.30%
23:50 JPY BoJ Minutes
01:00 NZD ANZ Business Confidence May P 7 -8.4 -2
06:00 EUR Germany Factory Orders M/M Mar 3.00% 1.90% 1.20% 1.40%
08:00 EUR ECB Economic Bulletin
08:30 GBP Services PMI Apr F 61 60.1 60.1
09:00 EUR Eurozone Retail Sales M/M Mar 2.70% 1.40% 3.00%
11:00 GBP BoE Rate Decision 0.10% 0.10% 0.10%
11:00 GBP BoE Asset Purchase Facility 895B 875B 895B
11:00 GBP MPC Official Bank Rate Votes 0--0--9 0--0--9 0--0--9
11:00 GBP MPC Asset Purchase Facility Votes 0--1--8 0--0--9 0--0--9
11:30 USD Challenger Job Cuts Y/Y Apr -96.60% -86.20%
12:30 USD Initial Jobless Claims (Apr 30) 498K 540K 553K 590K
12:30 USD Nonfarm Productivity Q1 P 5.40% 3.50% -4.20%
12:30 USD Unit Labor Costs Q1 P -0.30% -0.70% 6.00%
14:30 USD Natural Gas Storage 68B 15B