Yen Holds Strong While Dollar Begins to Flex Its Muscles
Action Insight Mid-Day Report 7-23-24 |
Yen Holds Strong While Dollar Begins to Flex Its Muscles |
Japanese Yen continues to stand out as the strongest currency, in another day with a lackluster economic calendar. However, it's Dollar that's capturing market interest as markets enter into US session, where it has shown notable gains against major counterparts like Euro and Swiss Franc. Break of near term levels in both EUR/USD and USD CHF suggests that the greenback's near term rebound might extend further. A key question now is whether the "Trump Trade" has returned, in particular particularly after Kamala Harris has solidified her position as the Democratic presidential nominee by securing necessary party and public support. The prospect of Donald Trump returning to the presidency and implementing his characteristic trade and tax policies could lead to stronger economic growth and higher inflation. These factors are expected to moderate Fed's easing cycle, thereby supporting a stronger Dollar. In the broader currency spectrum, Dollar's momentum places it just behind Yen in terms of strength, followed by Canadian Dollar. At the other end, Australian Dollar languishes as the weakest, closely followed by New Zealand Dollar and then Euro. British Pound and Swiss Franc are positioned in the middle.... |
EUR/USD Mid-Day Outlook Daily Pivots: (S1) 1.0875; (P) 1.0889; (R1) 1.0905; More..... EUR/USD's break of 1.0871 support suggests that a short term top was already formed at 1.0947, on bearish divergence condition in 4H MACD. Intraday bias is back on the downside for 55 D EMA (now at 1.0810). Sustained break there will argue that whole rebound from 1.0601 has completed with three waves up to 1.0947, and target 1.0601/0665 support zone. For now, risk will stay on the downside as long as 1.0947 resistance holds, in case of recovery. | |
GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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14:00 | USD | Existing Home Sales Jun | 4.00M | 4.11M | 14:00 | EUR | Eurozone Consumer Confidence Jul P | -13 | -14 |
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