Commodities Down in Mild Risk-off Markets, Swiss Franc Firm With Dollar and Euro
| Action Insight Mid-Day Report 7-17-23 |
Commodities Down in Mild Risk-off Markets, Swiss Franc Firm With Dollar and Euro |
With mild risk aversion permeating the markets, Gold and some other commodities are weakening notably today. China's latest economic indicators paint a dreary picture – a sluggish recovery, dampened consumer demand, record youth unemployment, and escalating deflation risk. With a key meeting of the Chinese Communist Party's Politburo around the corner, all eyes are on the potential roll-out of substantial economic stimulus. Yet, market expectations remain modest for now. The Swiss Franc is currently outperforming in the markets, followed closely by the Dollar and Euro. Conversely, Japanese Yen is showing signs of weakness as it continues to digest recent gains. Australian and New Zealand Dollars are languishing at the bottom of the performance list, with the British Pound hot on their heels. Technically, Gold is trying to fall away from 38.2% retracement of 2062.95 to 1892.76 at 1957.77. Next focus is 55 4H EMA (now at 1940.07). Strong support from there will keep the rebound from 1892.76 alive. Sustained break of 1957.77 will pave the way to 61.8% retracement at 1997.93. Nevertheless, firm break of the EMA will argue that the rebound has completed and bring retest of 1892.76 low. In Europe, at the time of writing, FTSE is down -0.26%. DAX is down -0.56%. CAC is down -1.22%. Germany 10-year yield is down -0.034 at 0.480. Earlier in Asia, Japan and Hong Kong markets were closed. China Shanghai SSE dropped -0.87%. Singapore Strait Times rose 0.18%. |
EUR/USD Mid-Day Outlook Daily Pivots: (S1) 1.1207; (P) 1.1226; (R1) 1.1248; More... Intraday bias in EUR/USD is turned neutral with extended loss of upside momentum as seen in 4 H MACD. While further rise cannot be ruled out, upside should be limited by 1.1273 fibonacci level on first attempt. Break of 1.1186 minor support will bring deeper pull back first. Nevertheless, sustained break of 1.1273 will extend larger up trend to 161.8% projection of 1.0634 to 1.1011 from 1.0832 at 1.1442 next. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 02:00 | CNY | GDP Y/Y Q2 | 6.30% | 7.10% | 4.50% | | 02:00 | CNY | Industrial Production Y/Y Jun | 4.40% | 2.60% | 3.50% | | 02:00 | CNY | Retail Sales Y/Y Jun | 3.10% | 3.40% | 12.70% | | 02:00 | CNY | Fixed Asset Investment YTD Y/Y Jun | 3.80% | 3.40% | 4.00% | | 12:30 | USD | Empire State Manufacturing Index Jul | 1.1 | 0 | 6.6 | | 12:30 | CAD | Wholesale Sales M/M May | 3.50% | 2.20% | -1.40% |
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