Swiss Franc, Dollar, and Yen Jumped on Falling Global Benchmark Yields
Action Insight Weekly Report 6-13-21
Swiss Franc, Dollar, and Yen Jumped on Falling Global Benchmark Yields

The intra-week rebound in global benchmark treasury yields was rather short-lived. Yields in Germany, US and Japan then turned south after ECB's decision on PEPP purchases. That came even though CPI jumped to 13-year high. It remains to be seen of investors are giving a strong node to central bankers' view that it's transitory.

Swiss Franc, Dollar and Yen ended the week as best performers, following the decline in yields. New Zealand and Canadian Dollar are the two weakest. That came even though both respective central banks indicated rate hike next year. BoC also hinted on more tapering in July. Focus will now turn to FOMC meeting this week, and see if Fed could give Dollar another lift. Also, Franc will look into how SNB would talk down it's appreciation.

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USD/CAD Weekly Outlook

USD/CAD rebound strongly towards the end of the week, but stays below 1.2201 resistance. Initial bias remains neutral first and outlook is unchanged. We'd stay cautious on strong support from 1.2048/61 to bring reversal. On the upside, firm break of 1.2201 resistance will indicate short term bottoming and turn bias to the upside for stronger rebound. However, sustained break of 1.2048/61 will carry larger bearish implications. Next near term target will be 161.8% projection of 1.2880 to 1.2363 from 1.2653 at 1.1816.

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EURUSD | USDJPY | GBPUSD | USDCHF | AUDUSD | USDCAD

EURJPY | EURGBP | EURCHF | EURAUD | GBPJPY

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