Action Insight Mid-Day Report 5-2-19

BoE Triggers Little Reactions, Forex Markets Staying in Slow Motions

Action Insight Mid-Day Report 5-2-19 BoE Triggers Little Reactions, Forex Markets Staying in Slow Motions The forex markets are in slow motion today. Major pairs and crosses are bounded inside yesterday's range, with no follow through movement yet. BoE Super Thursday is a high profile event, but triggers no sustainable price actions yet. It's rather hard to react to BoE's new economic projections. Growth forecasts were revised up but inflation forecasts were revised down. Most importantly, BoE painted a much slower rate path and a full 25bps hike in Q4 2021. Meanwhile, there is no follow through buying in Dollar after the short rally yesterday, as Fed Chair Jerome Powell indicated there is no urgency to shift interest rate in either direction. Technically, 1.1175 minor support is a focus in EUR/USD and break will indicator completion of recent rebound. Dollar could ride on decline in EUR/USD and rally elsewhere. In particular, AUD/USD's recovery from 0.6988 could have completed ahead of 0.7081 resistance. Break of 0.6988 will resumer larger decline from 0.7295. Sterling is lowing some upside momentum against Dollar, Euro and Yen, even though more upside is mildly in favor. In Europe, FTSE is currently down -0.22%. DAX is up 0.11%. CAC is down -0.45%. German 10-year yield is down -0.005 at 0.011, staying positive. Earlier in Asia, Hong Kong HSI rose 0.83%. China Shanghai SSE rose 0.52%. Singapore Strait Times dropped -0.20%. Japan remained in ultra-long 10-day holiday. Full Report Here US initial jobless claims unchanged at 230k, above expectations Into US session: Little reactions to BoE, markets stuck in tight... BoE projects slower rate hike, faster growth, lower inflation BoE Governor Mark Carney press conference live stream BoE kept Bank Rant unchanged at 0.75%, full statement UK PMI construction rose to 50.5, return to growth Eurozone PMI manufacturing finalized at 47.9, remained deep in decline, downturn... Dollar and yield rebounded as Fed Powell talked down rate cuts Top Movers | HeatMap | Pivot Points | Pivot Meters | Action Bias | Vol BOE Preview: Looking Through Strong First Quarter, with Focus on Softer... Fed Judges Weak Inflation as Transitory, Dismissing Rate Cut Chance US Crude Oil Inventory Jumped Much More Than Expected, Paring Price... Central Bank Views | China Watch | Oil N' Gold | Special Topics GBP/USD Mid-Day Outlook Daily Pivots: (S1) 1.3018; (P) 1.3060; (R1) 1.3093; More.... With 4 hour MACD crossed below signal line, a temporary top is in place at 1.3102 in GBP/USD and intraday bias is turned neutral first. Current development suggests that corrective pull back from 1.3381 has completed at 1.2865. Hence, another rise is mildly in favor. On the upside, above 1.3102 will target 1.3381 resistance first. Break will resume whole rebound from 1.2391. On the downside, though, break of 1.2865 will target 1.2773 key support instead. Full Report Here EURUSD | USDJPY | GBPUSD | USDCHF | AUDUSD | USDCAD EURJPY | EURGBP | EURCHF | EURAUD | GBPJPY Recommended Readings USDJPY Backs Off Lower Prices With Eyes 112.03 Zone BoE Preview: Super Thursday Unlikely For Volatility The Fed Has Returned Faith In The Dollar To The Market BoE To Offer Hawkish Surprise? Gold Develops In Descending Channel In Near Term Dollar Whipsaws After Fed, Pound Holds Firm Ahead Of BoE USDJPY Under Descending Line, Bias Neutral-To-Bullish AUDUSD Still Consolidates In A Sideways Channel, Hovers Near 0.7000 Fundamental Analysis | Technical Analysis In-depth Reports Fed Judges Weak Inflation as Transitory, Dismissing Rate Cut Chance "Tarrified" Part III: European Union The Next Target of U.S. Tariffs Case for RBA Rate Cut Strengthens But We Still Favour August Over May for the First Move Are Sanctions On Iranian Oil Purchases A 'Big Deal'? Green Shoots Or Rogue Weeds? Don't Expect a Big Jolt to Growth if Trade Tensions Ease Economic Calendar GMT Ccy Events Actual Forecast Previous Revised 22:45 NZD Building Permits M/M Mar -6.90% 1.90% 1.70% 06:00 EUR German Retail Sales M/M Mar -0.20% -0.50% 0.90% 0.50% 06:30 CHF Retail Sales Real Y/Y Mar -0.70% -0.40% -0.20% 07:30 CHF PMI Manufacturing Apr 48.5 51 50.3 07:45 EUR Italy Manufacturing PMI Apr 49.1 47.7 47.4 07:50 EUR France Manufacturing PMI Apr F 50 49.6 49.6 07:55 EUR Germany Manufacturing PMI Apr F 44.4 44.5 44.5 08:00 EUR Eurozone Manufacturing PMI Apr F 47.9 47.8 47.8 08:30 GBP Construction PMI Apr 50.5 50.3 49.7 11:00 GBP BoE Rate Decision 0.75% 0.75% 0.75% 11:00 GBP BoE Asset Purchase Target May 435B 435B 435B 11:00 GBP MPC Official Bank Rate Votes 0--0--9 0--0--9 0--0--9 11:00 GBP MPC Asset Purchase Facility Votes 0--0--9 0--0--9 0--0--9 11:30 USD Challenger Job Cuts Y/Y Apr 10.90% 0.40% 12:30 USD Initial Jobless Claims (APR 27) 230K 220K 230K 12:30 USD Nonfarm Productivity Q1 P 3.60% 1.20% 1.90% 1.30% 12:30 USD Unit Labor Costs Q1 P -0.90% 2.10% 2.00% 2.50% 14:00 USD Factory Orders Mar 1.40% -0.50% 14:30 USD Natural Gas Storage 107B 92B

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