USD Jumps on Rising Yields and Risk Aversion, CAD Down after CPI Miss
| Action Insight Mid-Day Report 9-20-22 |
USD Jumps on Rising Yields and Risk Aversion, CAD Down after CPI Miss |
Canadian Dollar falls broadly in early US session after weaker than expected inflation reading. Yet, it's still undecided on which currency is worst. Dollar is current in the driving seat, as lifted by extended rally in treasury yield. 10-year yield is trading up above 3.5 handle for the first time in more than a decade. Swiss Franc and Yen are steady on risk aversion. But Sterling is more resilient with help from buying against Euro. Technically, immediate focus in on 1.3343 temporary top in USD/CAD. Firm break there will resume larger up trend to medium term fibonacci level at 1.3650. That would be a leading signal of more rally in Dollar elsewhere. In Europe, at the time of writing, FTSE is down -0.37%. DAX is down -0.88%. CAC is down -1.14%. Germany 10-year yield is up 0.115 at 1.919. Earlier in Asia, Nikkei rose 0.44%. Hong Kong rose 1.16%. China Shanghai SSE rose 0.22%. Singapore Strait Times rose 0.33%. Japan 10-year JGB yield rose 0.0028 to 0.260. |
USD/CHF Mid-Day Outlook Daily Pivots: (S1) 0.9615; (P) 0.9655; (R1) 0.9684; More No change in USD/CHF's outlook and intraday bias stays mildly on the upside. Rise from 0.9478 would target 0.9868 resistance. Break there will argue that larger up trend is ready to resume through 1.0063. Overall, the corrective pattern from 1.0063 high could still extend. Below 0.9554 minor support will turn bias back to the downside for 0.9478 and below. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 23:30 | JPY | National CPI Core Y/Y Aug | 2.80% | 2.70% | 2.40% | | 01:30 | AUD | RBA Minutes | | 06:00 | EUR | Germany PPI M/M Aug | 7.90% | 1.50% | 5.30% | | 06:00 | EUR | Germany PPI Y/Y Aug | 45.80% | 37.50% | 37.20% | | 07:00 | CHF | SECO Economic Forecasts | | 08:00 | EUR | Current Account (EUR) Jul | -19.9B | 5.3B | 4.2B | | 12:30 | USD | Building Permits Aug | 1.52M | 1.62M | 1.69M | | 12:30 | USD | Housing Starts Aug | 1.575M | 1.46M | 1.45M | | 12:30 | CAD | CPI M/M Aug | -0.30% | -0.10% | 0.10% | | 12:30 | CAD | CPI Y/Y Aug | 7.00% | 7.30% | 7.60% | | 12:30 | CAD | CPI Common Y/Y Aug | 5.70% | 5.60% | 5.50% | | 12:30 | CAD | CPI Median Y/Y Aug | 4.80% | 5.10% | 5.00% | | 12:30 | CAD | CPI Trimmed Y/Y Aug | 5.20% | 5.50% | 5.40% |
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