Euro Slips After Weak PMI Data, Yen Extends Gains on BoJ Speculations
| Action Insight Mid-Day Report 7-24-24 |
Euro Slips After Weak PMI Data, Yen Extends Gains on BoJ Speculations |
Yen continues to dominate the forex markets today, with speculation heating up ahead of next week's BoJ meeting. According to a Reuters report, unnamed sources have confirmed that a rate hike will be debated at the meeting. However, the decision is expected to be a "close call," described as a "judgment call" on whether to "act now or later this year." It is also believed that BoJ will unveil a plan to roughly halve its bond purchases in the coming years, continuing its steady withdrawal from massive monetary stimulus. Meanwhile, Euro is under pressure following disappointing PMI data, which showed significant deterioration in the manufacturing sector while services growth remained moderate only. This data should justify a September ECB rate cut, although inflation data might complicate further cuts beyond that. On the other hand, Sterling is supported by solid PMI figures, bolstering the stance of BoE hawks against a rate cut in August... |
EUR/JPY Mid-Day Outlook Daily Pivots: (S1) 168.13; (P) 169.61; (R1) 170.38; More... EUR/JPY's fall from 175.41 accelerates lower today and it's now pressing 38.2% retracement of 153.15 to 175.41 at 166.90. Some support could be seen from this fibonacci level, and break of 169.19 minor resistance will turn intraday bias neutral first. However, decisive break of 166.90 will pave the way to medium term channel support (now at 165.46). | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 23:00 | AUD | Manufacturing PMI Jul P | 47.4 | 47.2 | | 23:00 | AUD | Services PMI Jul P | 50.8 | 51.2 | | 00:30 | JPY | Manufacturing PMI Jul P | 49.2 | 50.5 | 50 | | 00:30 | JPY | Services PMI Jul P | 53.9 | 49.4 | | 06:00 | EUR | Germany GfK Consumer Confidence Aug | -18.4 | -21.1 | -21.8 | -21.6 | | 07:15 | EUR | France Manufacturing PMI Jul P | 44.1 | 45.9 | 45.4 | | 07:15 | EUR | France Services PMI Jul P | 50.7 | 49.7 | 49.6 | | 07:30 | EUR | Germany Manufacturing PMI Jul P | 42.6 | 44.5 | 43.5 | | 07:30 | EUR | Germany Services PMI Jul P | 52 | 53.5 | 53.1 | | 08:00 | EUR | Eurozone Manufacturing PMI Jul P | 45.6 | 46.3 | 45.8 | | 08:00 | EUR | Eurozone Services PMI Jul P | 51.9 | 52.9 | 52.8 | | 08:30 | GBP | Manufacturing PMI Jul P | 51.8 | 51.1 | 50.9 | | 08:30 | GBP | Services PMI Jul P | 52.4 | 52.5 | 52.1 | | 12:30 | CAD | New Housing Price Index M/M Jun | -0.20% | 0.10% | 0.20% | | 12:30 | USD | Goods Trade Balance (USD) Jun P | -96.8B | -98.0B | -99.4B | -99.4B | | 12:30 | USD | Wholesale Inventories Jun P | 0.20% | 0.50% | 0.60% | | 13:45 | CAD | BoC Interest Rate Decision | 4.50% | 4.75% | | 13:45 | USD | Manufacturing PMI Jul P | 51.5 | 51.6 | | 13:45 | USD | Services PMI Jul P | 54.5 | 55.3 | | 14:00 | USD | New Home Sales M/M Jun | 643K | 619K | | 14:30 | CAD | BoC Press Conference | | 14:30 | USD | Crude Oil Inventories | -2.6M | -4.9M |
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