Yen Staying Generally Weak, Canadian Shrugs Poor Job Data
| Action Insight Mid-Day Report 6-9-23 |
Yen Staying Generally Weak, Canadian Shrugs Poor Job Data |
Yen remains the worst performer for the day, but selloff appears to have slowed somewhat. Meanwhile, Euro and Swiss Franc are also softening, thanks to selling against Sterling. Canadian Dollar is mixed for now, with muted reaction to worse than expected job data from Canada. While the data doesn't add to the case for another rate hike by BoC in July, the eventual outcome will still very much depend on the next around of economic projections. Meanwhile, Australian and New Zealand Dollars are the better performers today. US Dollar turned mixed digesting some of this week's losses. Technically, EUR/GBP is finally resuming recent decline from 0.8977. Next target is 0.8545 support and then 161.8% projection of 0.8977 to 0.8717 from 0.8874 at 0.8453. The question is whether the selloff in EUR/GBP would spread to other Euro pairs. In particular, attention would be on whether EUR/CHF could break through 0.9670 support to resume larger decline. In Europe, at the time of writing, FTSE is down -0.51%. DAX is down -0.16%. CAC is down -0.29%. Germany 10-year yield is down -0.026 at 2.379. Earlier in Asia, Nikkei rose 1.97%. Hong Kong HSI rose 0.47%. China Shanghai SSE rose 0.55%. Singapore Strait Times rose 0.01%. Japan 10-year JGB yield dropped -0.0070 to 0.435. |
USD/JPY Mid-Day Outlook Daily Pivots: (S1) 138.41; (P) 139.32; (R1) 139.82; More... Sideway trading continues in USD/JPY and intraday bias remains neutral at this point. With 138.22 minor support intact, further rally is expected. On the upside, break of 140.90 will resume larger rise from 127.20 to 142.48 fibonacci level. However, considering bearish divergence condition in 4 hour MACD, break of 138.22 will confirm short term topping, and turn bias back to the downside for 55 D EMA (now at 136.70). | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 23:50 | JPY | Money Supply M2+CD Y/Y May | 2.70% | 2.50% | 2.50% | 2.60% | | 01:30 | CNY | CPI Y/Y May | 0.20% | 0.10% | 0.10% | | 01:30 | CNY | PPI Y/Y May | -4.60% | -3.90% | -3.60% | | 08:00 | EUR | Italy Industrial Output M/M Apr | -1.90% | 0.10% | -0.60% | | 12:30 | CAD | Capacity Utilization Q1 | 81.90% | 82.20% | 81.70% | | 12:30 | CAD | Net Change in Employment May | -17.3K | 21.2K | 41.4K | | 12:30 | CAD | Unemployment Rate May | 5.20% | 5.10% | 5.00% |
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