Dollar Continuing Rally, Euro Losing Momentum

Action Insight Daily Report 9-1-22

Dollar Continuing Rally, Euro Losing Momentum

Dollar's rally continues in early US session as supported by risk aversion and rising yields. On the other hand, Euro is staying to digest this week's gain, and broadly. As for today, Canadian Dollar is currently the second strongest, following the greenback. Aussie and Kiwi follow. Sterling and Yen are the next weakest following Euro.

Technically, as Euro is starting to lose momentum in crosses while Dollar is heading higher, it's probably time for EUR/USD to break to the downside. Outlook is staying bearish with 1.0094 resistance intact in EUR/USD. The key level is 61.8% projection of 1.0773 to 0.9951 from 1.0368 at 0.9860. Decisive break there will confirm that bears are back in control and would setup downside acceleration to 100% projection at 0.9546.

In Europe, at the time of writing, FTSE is down -1.38%. DAX is down -1.10%. CAC is down -1.26%. Germany 10-yaer yield is up 0.037 at 1.579. Earlier in Asia, Nikkei dropped -1.53%. Hong Kong HSI dropped -1.79%. China Shanghai SSE dropped -0.54%. Singapore Strait Times rose 0.07%. Japan 10-year JGB yield rose 0.122 to 0.240.

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

GBP/USD Mid-Day Outlook

Daily Pivots: (S1) 1.1584; (P) 1.1639; (R1) 1.1679; More...

GBP/USD's down trend is in progress and intraday bias stays on the downside. Current fall should target 1.1409 long term support next. On the upside, above 1.1759 minor resistance will turn intraday bias neutral for consolidations. But outlook will stay bearish as long as 1.2292 resistance holds, in case of recovery.

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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 AUD AiG Performance of Mfg Index Aug 49.3 52.5
23:50 JPY Capital Spending Q2 4.60% 3.00% 3.00%
00:30 JPY Manufacturing PMI Aug F 51.5 51 51
01:30 AUD Private Capital Expenditure Q2 -0.30% 1.10% -0.30%
01:45 CNY Caixin Manufacturing PMI Aug 49.5 50.2 50.4
06:00 EUR Germany Retail Sales M/M Jul 1.90% -0.40% -1.60%
06:30 CHF Real Retail Sales Y/Y Jul 2.60% 0.90% 1.20% 0.70%
06:30 CHF CPI M/M Aug 0.30% 0.40% 0.00%
06:30 CHF CPI Y/Y Aug 3.50% 3.50% 3.40%
07:30 CHF SVME - PMI Aug 56.4 56.4 58
07:45 EUR Italy Manufacturing PMI Aug 48 48.4 48.5
07:50 EUR France Manufacturing PMI Aug F 50.6 49 49
07:55 EUR Germany Manufacturing PMI Aug F 49.1 49.8 49.8
08:00 EUR Eurozone Manufacturing PMI Aug F 49.6 49.7 49.7
08:00 EUR Italy Unemployment Jul 7.90% 8.10% 8.10% 8.00%
08:30 GBP Manufacturing PMI Aug F 47.3 46 46
09:00 EUR Eurozone Unemployment Rate Jul 6.60% 6.60% 6.60% 6.70%
11:30 USD Challenger Job Cuts Y/Y Aug 30.30% 36.30%
12:30 USD Initial Jobless Claims (Aug 26) 232K 250K 243K 237K
12:30 USD Nonfarm Productivity Q2 -4.10% -4.60% -4.60%
12:30 USD Unit Labor Costs Q2 10.20% 10.60% 10.80%
12:30 CAD Building Permits M/M Jul -6.60% -1.50% -1.50% -0.60%
13:30 CAD Manufacturing PMI Aug 52.5
13:45 USD Manufacturing PMI Aug F 51.3 51.3
14:00 USD ISM Manufacturing PMI Aug 52.6 52.8
14:00 USD ISM Manufacturing Prices Paid Aug 59.5 60
14:00 USD ISM Manufacturing Employment Index Aug 49.9
14:00 USD Construction Spending M/M Jul -0.10% -1.10%
14:30 USD Natural Gas Storage 58B 60B