Dollar Paring Gains as Retail Sales Strong, But Not Materially Stronger Than Expected
Action Insight Mid-Day Report 7-15-22

Dollar Paring Gains as Retail Sales Strong, But Not Materially Stronger Than Expected

Dollar is starting to pare back this week's gains in early US session, after retail sales data were not materially stronger than expectations. It looks like EUR/USD could close the week above parity, and may start to stabilize for the near term. US futures are trading higher after the data and could point to a rebound in stocks. There is prospect of stronger rebound for Aussie and Loonie for the rest of the session.

Technically, before the close of the week, some attention could be on EUR/JPY, which is pressing 139.78 minor resistance. Firm break there will argue that that pull back from 144.26 has completed, and would bring retest of this high next week, probably with up trend resumption later in the month. Rebound is stocks would help EUR/JPY achieve it.

In Europe, at the time of writing, FTSE is up 0.86%. DAX is up 1.31%. CAC is up 0.32%. Germany 10-year yield is down -0.029 at 1.150. Earlier in Asia, Nikkei rose 0.54%. Hong Kong HSI dropped -2.19%. China Shanghai SSE dropped -1.64%. Singapore Strait Times rose 0.28%. Japan 10-year JGB yield dropped -0.0002 to 0.235.

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

EUR/USD Mid-Day Outlook

Daily Pivots: (S1) 0.9960; (P) 1.0013; (R1) 1.0074; More...

Intraday bias in EUR/USD is turned neutral with current recovery. On the upside, firm break of 1.0121 minor resistance will indicate short term bottoming at 0.9951. Intraday bias will be back on the upside for strong rebound back to 1.0348 support turned resistance. On the downside, sustained break of 100% projection of 1.1184 to 1.0348 from 1.0773 at 0.9937 will extend larger down trend to 161.8% projection at 0.9420.

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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 NZD Business NZ PMI Jun 49.7 52.9
02:00 CNY GDP Y/Y Q2 0.40% 1.00% 4.80%
02:00 CNY Retail Sales Y/Y Jun 3.10% 0.40% -6.70%
02:00 CNY Industrial Production Y/Y Jun 3.90% 4.30% 0.70%
02:00 CNY Fixed Asset Investment YTD Y/Y Jun 6.10% 6.00% 6.20%
04:30 JPY Tertiary Industry Index M/M May 0.80% 4.30% 0.70%
09:00 EUR Eurozone Trade Balance (EUR) May -26.0B -26.3B -31.7B -31.8B
12:30 CAD Wholesale Sales M/M May 1.60% 0.20% -0.50%
12:30 USD Retail Sales M/M Jun 1.00% 0.80% -0.30%
12:30 USD Retail Sales ex Autos M/M Jun 1.00% 0.60% 0.50%
12:30 USD Empire State Manufacturing Index Jul 11.1 -3.8 -1.2
12:30 USD Import Price Index M/M Jun 0.20% 0.70% 0.60%
13:15 USD Industrial Production M/M Jun 0.20% 0.20%
13:15 USD Capacity Utilization Jun 79.20% 79.00%
14:00 USD Michigan Consumer Sentiment Index Jul P 49 50
14:00 USD Business Inventories May 1.10% 1.20%