Euro Trades Lower on Disappointing German Ifo Data
| Action Insight Mid-Day Report 7-25-23 |
Euro Trades Lower on Disappointing German Ifo Data |
Euro falls broadly today following release of weaker than expected German Ifo business climate data, although losses remain somewhat contained for the moment. It appears traders are holding their bets in anticipation of the upcoming FOMC and ECB rate decisions. Further, with July drawing to a close and the markets in a characteristic summer lull, significant movements are somewhat restrained. Australian Dollar holds onto its position as the strongest performer of the day, bolstered by earlier gains and closely trailed by New Zealand dollar. Swiss Franc claims the third spot, given a boost by the weakening Euro. On the other end of the spectrum, Canadian dollar follows the common currency as the next weakest, while Dollar trails behind. Japanese Yen presents a mixed picture, with traders also keenly awaiting BoJ's decision due on Friday. All eyes in the forex market will be on EUR/USD in the coming days. From a technical perspective, the pair could have peaked at 1.1274, after reaching the 61.8% retracement of 1.2348 (2021 high) to 0.9534 (2022 low) at 1.1273. However, decisive break through 1.1011 resistance-turned-support level would be needed for confirmation. Should this occur, deeper decline could be seen to 1.0634 support level before a rebound sets up the medium-term range. In Europe, at the time of writing, FTSE is up 0.16%. DAX is up 0.05%. CAC is up 0.07%. Germany 10-year yield is up 0.0177 at 2.444. Earlier in Asia, Nikkei dropped -0.06%. Hong Kong HSI rose 4.10%. China Shanghai SSE rose 2.13%. Singapore Strait Times rose 0.64%. Japan 10-year JGB yield rose 0.0159 to 0.467. |
EUR/GBP Mid-Day Outlook Daily Pivots: (S1) 0.8612; (P) 0.8636; (R1) 0.8653; More... EUR/GBP's break of 0.8619 minor support argues that rebound from 0.8502 has completed at 0.8700, ahead of 0.8717 support turned resistance. Intraday bias is back on the downside for retesting 0.8502 low. Firm break there will resume larger decline form 0.8977. Nevertheless, break of 0.8700 will revive near term bullishness for another take on 0.8717. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
|---|
| 08:00 | EUR | Germany IFO Business Climate Jul | 87.3 | 88 | 88.5 | 88.6 | | 08:00 | EUR | Germany IFO Current Assessment Jul | 91.3 | 93 | 93.7 | | 08:00 | EUR | Germany IFO Expectations Jul | 83.5 | 83 | 83.6 | 83.8 | | 13:00 | USD | S&P/Case-Shiller Home Price Indices Y/Y May | -1.70% | -1.40% | -1.70% | | 13:00 | USD | Housing Price Index M/M May | 0.70% | 0.60% | 0.70% | | 14:00 | USD | Consumer Confidence Jul | 112.1 | 109.7 | | 14:00 | USD | Richmond Fed Manufacturing Index Jul | -10 | -7 |
|
|
|
