Action Insight Mid-Day Report 6-10-19

Sterling Tumbles on GDP Contraction and Weak Manufacturing Outlook

Action Insight Daily Report 6-10-19 Sterling Tumbles on GDP Contraction and Weak Manufacturing Outlook Sterling trades broadly lower today after data showed unexpected GDP contraction in April. More importantly, the deterioration in manufacturing after Brexit stockpiling appeared to be much worse than expected. Other survey data indicated little recovery momentum in Q2 so far, which could be heading for a contraction. Meanwhile, Australian and New Zealand Dollar are among the weakest ones as China May imports contracted by most contracted by most since July 2016. Dollar is generally firm as lifted by US-Mexico deal on migration. Trump revealed today that a part of the agreement will need a "vote by Mexico's legislative body". He then threatens Mexican lawmakers that "we do not anticipate a problem with the vote but, if for any reason the approval is not forthcoming, tariffs will be reinstated." But in any case, tariffs threats are averted for now. Canadian and Euro are among the strongest too. Technically, GBP/USD's breach of 1.2668 minor support suggests that recovery from 1.2559 has completed earlier than expected at 1.2763. Intraday bias is back on the downside for retesting 1.2559 low. EUR/GBP's break of 0.8902 temporary top indicates resumption of recent rise towards 0.9101 key resistance. AUD/USD breached 0.6962 minor support too and more downside is in favor. Though, we'd prefer deeper decline to confirm. USD/CHF and USD/JPY are staying in consolidation. EUR/USD is resilient, remains well above 1.1251 minor support. Thus, there is no clear sign of topping in EUR/USD yet. In other markets, DOW is currently up 170pts or 0.66%. FTSE is up 0.48%. DAX is up 0.77%. CAC is up 0.18%. German 10-year yield is up 0.042 at -0.212. Earlier in Asia, Nikkei rose 1.20%. Hong Kong HSI rose 2.27%. China Shanghai SSE rose 0.86%. Singapore Strait Times rose 0.69%. Japan 10-year JGB yield dropped -0.005 to -0.121. Full Report Here NIESR: UK GDP to contract -0.2% in Q2 on production and... Into US session: Sterling weak on GDP contraction, US strongest EU Moscovic: G20 in Osaka maybe an important moment for US-China... Italy PM Conte: EU's EDP would compromise our economic sovereignty UK manufacturing contracts most since 2002, GBP/USD eyes 1.2668 minor support UK GDP contracted -0.4% in April, widespread weakness across manufacturing, EUR/GBP... China's trade surplus widened on sharp contraction in imports US Mnuchin: Trump perfectly happy to move forward with tariffs on... G20 finance ministers warned trade and geopolitical tensions have intensified Trump announced to indefinitely suspend tariffs on Mexico as agreement reached Quick Comments Top Movers | HeatMap | Pivot Points | Pivot Meters | Action Bias | Vol CFTC Commitments of Traders – USD to Weaken Further as Rate... CFTC Commitments of Traders – Energy Prices Weakened Further on Gloomy... Dollar in Steep Decline… Before Trump Drops Mexico Tariffs   Central Bank Views | China Watch | Oil N' Gold | Special Topics GBP/USD Mid-Day Outlook Daily Pivots: (S1) 1.2697; (P) 1.2730; (R1) 1.2772; More.... GBP/USD's breach of 1.2668 minor support suggests that corrective recovery from 1.2559 has completed at 1.2763 already. Intraday bias is turned back to the downside for retesting 1.2559 low first. Break will extend the decline from 1.3381 for 1.2391 low first. On the upside, in case of another rise, upside should be limited by by 1.2865 support turned resistance to bring fall resumption eventually. Full Report Here EURUSD | USDJPY | GBPUSD | USDCHF | AUDUSD | USDCAD EURJPY | EURGBP | EURCHF | EURAUD | GBPJPY Recommended Readings US 100 Index Recovers Notable Losses in Short Term Stocks Rally on Positive Trade Developments WTI Crude – Rebound on OPEC+ Extension Hints Pound Drops As Brexit Delay Provides More Pain For Ailing UK Economy Markets, Trade Wars, Oil Dollar Bounces Back From Soft Jobs Report On Mexico-US Migrant Deal Gold Turns Overbought Near Former Key Resistance GBPAUD Hovers Near Lower Boundary Of Trading Range USD/MXN Drops As Trariffs On Mexico Are Called Off EURUSD Reverses Near 1.1300 After Posting 2½-Month High Fundamental Analysis | Technical Analysis In-depth Reports Threat of Dumping US Treasury Signals China is Running Out of Weapons in Trade War ECB Not Delivering to Market Expectations 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" Economic Calendar GMT Ccy Events Actual Forecast Previous Revised 23:50 JPY Current Account Total (JPY) Apr P 1.60T 1.44T 1.27T 23:50 JPY GDP Q/Q Q1 F 0.60% 0.60% 0.50% 23:50 JPY GDP Deflator Y/Y Q1 F 0.10% 0.20% 0.20% 23:50 JPY Bank Lending incl Trusts Y/Y May 2.60% 2.40% 2.40% 23:50 JPY Bank Lending Ex-Trusts Y/Y May 2.80% 2.50% 02:00 CNY Trade Balance (USD) May 41.7B 23.2B 13.8B 02:00 CNY Imports (USD) Y/Y May -8.50% -3.30% 4.00% 02:00 CNY Exports (USD) Y/Y May 1.10% -3.80% -2.70% 02:00 CNY Trade Balance (CNY) May 279B 136B 94B 02:00 CNY Imports Y/Y (CNY) May -2.50% 5.80% 10.30% 02:00 CNY Exports Y/Y (CNY) May 7.70% 4.70% 3.10% 05:00 JPY Eco Watchers Survey Current May 44.1 45.5 45.3 08:30 GBP GDP M/M Apr -0.40% -0.10% -0.10% 08:30 GBP Index of Services 3M/3M Apr 0.20% 0.20% 0.30% 08:30 GBP Industrial Production M/M Apr -2.70% -1.00% 0.70% 08:30 GBP Industrial Production Y/Y Apr -1.00% 0.90% 1.30% 08:30 GBP Manufacturing Production M/M Apr -3.90% -1.40% 0.90% 08:30 GBP Manufacturing Production Y/Y Apr -0.80% 2.00% 2.60% 08:30 GBP Construction Output M/M Apr -0.40% 0.50% -1.90% 08:30 GBP Visible Trade Balance (GBP) Apr -12.1B -13.1B -13.7B -15.4B 12:15 CAD Housing Starts May 202K 220K 235K 233K 12:30 CAD Building Permits M/M Apr 14.70% 1.80% 2.10% 2.80%

Action Forex Company Limited, Room 804, 8/F., Prosperity Centre, 982 Canton Road, Mongkok, Kowloon 852 Hong Kong SafeUnsubscribe™ mondemand.forex@blogger.com Forward this report to a friend! | Update Profile | About our service provider Sent by contact@actionforex.com in collaboration with Try email marketing for free today!