Euro Talked Up By ECB Hawks, Dollar Shrugs NFP
Action Insight Mid-Day Report 5-6-22

Euro Talked Up By ECB Hawks, Dollar Shrugs NFP

Dollar turns slightly softer in early US session even though non-farm payroll report came in slightly better than expected. Yen is also weak on rising benchmark global yields. On the other hand, Euro jumps broadly as supported by hawkish comments from ECB officials. As for the week, Aussie and Euro are now the strongest ones while Sterling and Swissy are the weakest.

Technically, EUR/CHF finally breaks through 1.0400 resistance today, after brief set back. Rebound from 0.9970 is resuming for 1.0610 structural resistance next. The development could help lift Euro against others. In particular, EUR/GBP is on track to 0.8697 medium term fibonacci level.

In Europe, at the time of writing, FTSE is down -0.77%. DAX is down -0.92%. CAC is down -0.99%. Germany 10-year yield is up 0.038 at 1.086. Earlier in Asia, Nikkei rose 0.69%. Hong Kong HSI dropped -3.81%. China Shanghai SSE dropped -2.16%. Singapore Strait Times dropped -1.55%. Japan 10-year JGB yield rose 0.0153 to 0.230.

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

EUR/USD Mid-Day Outlook

Daily Pivots: (S1) 1.0474; (P) 1.0558 (R1) 1.0623; More...

EUR/USD recovers ahead of 1.0470 support and intraday bias remains neutral at this point. Still, outlook stays bearish with 1.0756 support turned resistance intact. On the downside, break of 1.0470 will resume larger down trend. Next target will be 161.8% projection of 1.1494 to 1.0805 from 1.1184 at 1.0069.

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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
22:30 AUD AiG Performance of Services Index Apr 57.8 56.2
23:30 JPY Tokyo CPI Core Y/Y Apr 1.90% 1.80% 0.80%
23:50 JPY Monetary Base Y/Y Apr 6.60% 8.20% 7.90%
01:30 AUD RBA Monetary Policy Statement
05:45 CHF Unemployment Rate Apr 2.20% 2.20% 2.20%
06:00 EUR Germany Industrial Production M/M Mar -3.90% -1.30% 0.20%
07:00 CHF Foreign Currency Reserves (CHF) Apr 926B 911B
08:00 EUR Italy Retail Sales M/M Mar -0.50% 0.50% 0.70%
08:30 GBP Construction PMI Apr 58.2 58 59.1
12:30 USD Nonfarm Payrolls Apr 428K 400K 431K 428K
12:30 USD Unemployment Rate Apr 3.60% 3.60% 3.60%
12:30 USD Average Hourly Earnings M/M Apr 0.30% 0.40% 0.40% 0.50%
12:30 CAD Net Change in Employment Apr 15.3K 39.5K 72.5K
12:30 CAD Unemployment Rate Apr 5.20% 5.20% 5.30%
14:00 CAD Ivey PMI Apr 70 74.2