Action Insight Daily Report 6-4-19

Dollar Decline Accelerates on Falling Yield and Stocks, Trade Wars and Fed Cut Talks

Action Insight Daily Report 6-4-19 Dollar Decline Accelerates on Falling Yield and Stocks, Trade Wars and Fed Cut Talks Dollar suffered another round of selloff this week and remains broadly weak today. Free fall in treasury yields continued overnight with 10-year yield closing at 2.081, down -0.061. 2% handle is now looking vulnerable with current downside acceleration. Tech stocks were hit hard with NASDAQ lost -1.61%, on news that US Justice Department was planning to begin an antitrust investigation into Google. Meanwhile, US formally blamed China for "blame game" in its white paper on trade. Mexico drew a clear red line in rejection so called "safe third country" options in tariff-migration negotiations with US. St. Louis Fed President James Bullard now openly called for a rate cut as insurance to sharp slowdown. These are all Dollar negative factors. Staying in the currency markets, Dollar stays weak together with New Zealand and Australian Dollar. RBA delivered the highly anticipated rate cut and hinted that more could be coming. Yen is currently the strongest one for today, but it's generally staying in consolidation except versus Dollar. It may still take some more time before Yen is in full gear again. Euro is currently the second strongest, very much helped by rally in EUR/USD. Technically, 1.1263 resistance in EUR/USD, 0.6988 resistance in AUD/USD and 1.3429 support in USD/CAD are the levels to watch today. Decisive break of these levels will be strong signal of near term bearish reversal in Dollar. That will align with bearish outlook in USD/CHF and USD/JPY too and indicates more downside for the greenback ahead. At the same time, with such development, gold could head further for a test on 1346.71 near term resistance. In Asia, Nikkei dropped -0.1%. Hong Kong HSI is down -0.68%. China Shanghai SSE is down -0.98%. Singapore Strait Times is up 0.38%. Japan 10-year JGB yield is down-0.009 at -0.101. Overnight, DOW rose 0.02%. S&P 500 dropped -0.28%. NASDAQ dropped -1.61%. 10-year yield dropped -0.061 to 2.081. Full Report Here Fed Bullard: Rate cut could be coming as severe trade uncertainties... Mexico rejects safe third country proposal, pledges retaliation to US tariffs US accused China for blame game and misrepresentation of history on... RBA cuts cash rate by 25bps to 1.25%, full statement Quick Comments Top Movers | HeatMap | Pivot Points | Pivot Meters | Action Bias | Vol ECB to Add More Dovish Notes: Focus on Forward Guidance Extension... Threat of Dumping US Treasury Signals China is Running Out of... Sentiment Sank on Trump's Political Weaponization of Tariffs   Central Bank Views | China Watch | Oil N' Gold | Special Topics EUR/USD Daily Outlook Daily Pivots: (S1) 1.1136; (P) 1.1136; (R1) 1.1191; More..... EUR/USD's rise extends further today and it's now pressing 1.1263 key near term resistance. At long as this resistance holds, outlook will stay bearish. That is, larger down trend from 1.2555 should resume sooner rather than later through 1.1107 low. However, considering bullish convergence condition in daily MACD, firm break of 1.1263 will be an early sign of medium term bottoming. Intraday bias will be turned back to the upside for 1.1448 resistance for confirmation. Full Report Here EURUSD | USDJPY | GBPUSD | USDCHF | AUDUSD | USDCAD EURJPY | EURGBP | EURCHF | EURAUD | GBPJPY Recommended Readings The Fed's Bullard First To Open The Door For A Rate Cut RBA Cuts Cash Rate and Leaves Open Prospects for Further Moves Australian Retail Sales Soften Again Asia FX Handover: The Bleeding Slows, RBA On Tap GBP/USD In Major Downtrend Below 1.2750 Bitcoin Cracks $8,000 Precious Metals Extend Gains On Falling Yields Dollar Index Vulnerable as Fed Rate Cut Odds Explode Higher Fundamental Analysis | Technical Analysis In-depth Reports Threat of Dumping US Treasury Signals China is Running Out of Weapons in Trade War RBA Cuts Cash Rate and Leaves Open Prospects for Further Moves Fed: Dovish Policy Signal To Pave The Way For An Upcoming Insurance Cut 1990's Reloaded? Clues On The Fed's Path To "Insurance Cuts" US: Do Deficits Still Matter? Let The EU 'Game Of Thrones' Begin Economic Calendar GMT Ccy Events Actual Forecast Previous Revised 22:45 NZD Terms of Trade Index Q/Q Q1 1.00% 0.50% -3.00% -3.20% 23:01 GBP BRC Retail Sales Monitor Y/Y May -3.00% 0.80% 3.70% 23:50 JPY Monetary Base Y/Y May 3.60% 3.20% 3.10% 1:30 AUD Current Account Balance (AUD) Q1 -2.9B -2.9B -7.2B -6.3B 1:30 AUD Retail Sales M/M Apr -0.10% 0.20% 0.30% 4:30 AUD RBA Rate Decision 1.25% 1.25% 1.50% 8:30 GBP Construction PMI May 50.6 50.5 9:00 EUR Eurozone Unemployment Rate Apr 7.70% 7.70% 9:00 EUR Eurozone CPI Core Y/Y May A 0.90% 1.30% 9:00 EUR Eurozone CPI Estimate Y/Y May 1.30% 1.70% 14:00 USD Factory Orders Apr -0.90% 1.90%

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