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. |
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. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 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 |
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