Euro Dips after ECB Rate Hike. Dollar Regains Ground

Action Insight Mid-Day Report 9-8-22

Euro Dips after ECB Rate Hike. Dollar Regains Ground

Euro dips broadly after ECB delivered a 75bps rate hike without additional hawkish surprise. But Aussie and Kiwi are the worst performers for today so far. Swiss Franc is rallying, thanks to buying against Euro, while Dollar is trading slightly firmer. Yen and Sterling are both consolidating this week's losses.

Technically, EUR/CHF's break of 0.9696 minor support could be a sign that Euro sellers are back. Deeper fall is in favor to retest 0.9550 low and break will resume larger down trend. Let's see if that will happen.

In Europe, at the time of writing, FTSE is down -0.68%. DAX is down -1.40%. CAC is down -0.80%. Germany 10-year yield is up 0.082 at 1.658. Earlier in Asia, Nikkei rose 2.31%. Hong Kong HSI dropped -1.00%. China Shanghai SSE dropped -0.33%. Singapore Strait Times rose 0.71%. Japan 10-year JGB yield rose 0.0042 to 0.252.

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

EUR/USD Mid-Day Outlook

Daily Pivots: (S1) 0.9918; (P) 0.9965; (R1) 1.0053; More...

Intraday bias in EUR/USD remains neutral and further decline is expected with 1.0078 resistance intact. Decisive break of 61.8% projection of 1.0773 to 0.9951 from 1.0368 at 0.9860 should prompt downside acceleration to 100% projection at 0.9546. On the upside, however, firm break of 1.0078 will indicate short term bottoming, and turn bias back to the upside for 1.0368 resistance instead.

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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
23:01 GBP RICS Housing Price Balance Aug 53% 61% 63% 62%
23:50 JPY Bank Lending Y/Y Aug 1.90% 1.90% 1.80% 1.70%
23:50 JPY GDP Q/Q Q2 F 0.90% 0.70% 0.50%
23:50 JPY GDP Deflator Y/Y Q2 F -0.30% -0.40% -0.40%
23:50 JPY Current Account (JPY) Jul -0.63T 0.02T 0.84T
01:30 AUD Trade Balance (AUD) Jul 8.73B 14.50B 17.67B
05:00 JPY Eco Watchers Survey: Current Aug 45.5 44 43.8
05:45 CHF Unemployment Rate Aug 2.10% 2.20% 2.20%
06:45 EUR France Trade Balance (EUR) Jul -14.5B -12.2B -13.1B
12:15 EUR ECB Main Refinancing Rate 1.25% 1.25% 0.50%
12:30 USD Initial Jobless Claims (Sep 2) 222K 243K 232K 228K
12:45 EUR ECB Press Conference
14:30 USD Natural Gas Storage 55B 61B
15:00 USD Crude Oil Inventories -2.0M -3.3M