Dollar and Yen Strike Back as Biden-McCarthy Meeting Eyed
| Action Insight Mid-Day Report 5-9-23 |
Dollar and Yen Strike Back as Biden-McCarthy Meeting Eyed |
Dollar and Yen are striking back on mild risk-off sentiment while Commodity currencies are paring some gains too. Eyes will be on the meeting between US President Joe Biden and Republican House Speaker Kevin McCarthy on debt ceiling. A final agreement on raising the debt limit is not expected today, but any rhetorics will be closely scrutinized, especially by American stocks and bonds investors. Euro continues to be under broad based pressure today, shrugging off hawkish comments from ECB policymakers. Though, for now, Swiss Franc is slightly worse. Sterling is regaining some ground, with weak momentum, with traders largely holding their bets ahead of BoE rate decision and economic projections later this week. Technically, AUD/USD retreats just ahead of 0.6804 resistance. Break of 0.6716 support will turn near term bias back to the downside back towards 0.6563 low. Meanwhile, USD/CAD also recovers ahead of 1.3299 support. Reversal in risk sentiment could list USD/CAD back towards 1.3668 resistance. In Europe, at the time of writing, FTSE is down -0.44%. DAX is down -0.38%. CAC is down -0.97%. Germany 10-year yield is down -0.0074 at 2.322. Earlier in Asia, Nikkei rose 1.01%. Hong Kong HSI dropped -2.12%. China Shanghai SSE dropped -1.10%. Singapore Strait Times dropped -0.45%. Japan 10-year JGB yield rose 0.0121 to 0.425. |
USD/CHF Mid-Day Outlook Daily Pivots: (S1) 0.8871; (P) 0.8892; (R1) 0.8915; More... Range trading continues in USD/CHF and intraday bias remains neutral first. While down trend from 1.0146 could still extend lower, strong support should be seen from 61.8% projection of 1.0146 to 0.9058 from 0.9439 at 0.8767, which is close to 0.8756 long term support, to bring rebound, at least on first attempt. On the upside, break of 0.8993 resistance will indicate short term bottoming, on bullish convergence condition in 4H MACD, and turn bias back to the upside for stronger rebound. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 23:30 | JPY | Labor Cash Earnings Y/Y Mar | 0.80% | 1.00% | 1.10% | | 23:30 | JPY | Overall Household Spending Y/Y Mar | -1.90% | 0.40% | 1.60% | | 03:00 | CNY | Trade Balance (USD) Apr | 90.2B | 69.0B | 88.2B | | 06:45 | EUR | France Trade Balance (EUR) Mar | -8.0B | -9.5B | -9.9B | -9.3B | | 10:00 | USD | NFIB Business Optimism Index Apr | 89.0 | 89.6 | 90.1 |
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