Action Insight Mid-Day Report 6-4-19

Dollar Turns Mixed as Risk Aversion Recedes Mildly, Overall Markets Mixed

Action Insight Mid-Day Report 6-4-19 Dollar Turns Mixed as Risk Aversion Recedes Mildly, Overall Markets Mixed While Dollar has been pressured for most of the day, receding risk aversion seems to be giving in a hand in early US session. The greenback is riding on recovery in both US yield and stocks and trades mildly higher. Adding to that, Chicago Fed President Charles Evans maintains that current interest rate is appropriate. However, St. Louis Fed President James Bullard has come out yesterday and become the first policymaker to call for rate cut already. The greenback will need some more solid economic data to give it sustainable rebound. Staying in the currency markets, Swiss Franc and Yen are so far the weakest one for today as stock markets recovery, naturally. But it's rather mixed elsewhere. RBA cut interest rate earlier today and Governor Philip Lowe indicates more are on the table. But Aussie is just mixed. Euro attempted for rally but was capped by slower than expected CPI reading. UK is, for now, the strongest one even though UK PMI construction dropped back to contraction region. The current markets will need some more time to sort out their directions. Technically, Dollar breached near term support levels against Euro, Aussie and Canadian. But it's refusing to give up for now and no follow through selling is seen yet. Focus remains on 1.1263 in EUR/USD, 0.6988 in AUD/USD and 1.3429 in USD/CAD. In Europe, currently, FTSE is up 0.46%. DAX is up 1.49%. CAC is up 0.67%. German 10-year yield is down -0.0059 at -0.205. Earlier in Asia, Nikkei dropped -0.01%. Hong Kong HSI dropped -0.49%. China Shanghai SSE dropped -0.96%. Singapore Strait Times rose 0.61%. Japan 10-year JGB yield dropped -0.074 to -0.10. Full Report Here Fed Evans: Current monetary policy setting has been appropriate Into US session: Dollar refusing to give up despite selloff, stocks... RBA Lowe: Possibility of lower interest rates remains on the table Eurozone unemployment rate dropped to record low, CPI slowed to 1.2% UK PMI construction dropped to 48.6, lowest since March 2018 UK Fox backs Hunt to be PM, dealmaking is part of... RBA cuts cash rate by 25bps to 1.25%, full statement Quick Comments Top Movers | HeatMap | Pivot Points | Pivot Meters | Action Bias | Vol RBA Lowers Policy Rate to 1.25%. Two of Big Four Pledge... ECB to Add More Dovish Notes: Focus on Forward Guidance Extension... Threat of Dumping US Treasury Signals China is Running Out of... Central Bank Views | China Watch | Oil N' Gold | Special Topics EUR/USD Mid-Day Outlook Daily Pivots: (S1) 1.1136; (P) 1.1136; (R1) 1.1191; More..... EUR/USD hits as high as 1.2773 today but fails to sustain above 1.1263 resistance for now. Intraday bias remains neutral first. As long as 1.1263 holds, outlook remains 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 Yield Spread Albatross Around USD/JPY's Neck ECB To Hold Rates, Reveal Details Of TLTRO3 As Euro Edges Higher EUR/USD Halts Rally As EZ Inflation Cools Ahead Of ECB UK Services PMI Could Dampen Pound Volatility BTCUSD Slips Sharply, Could Weaken Further In Short-Term Negativity Hits Markets, AUD In Demand Despite Rate Cut GBPUSD Recoups Losses But Downside Risks Not Faded Yet WTI Futures Hovers Above 4-Month Low, Bearish Bias May Run Out Of Steam Dollar Extends Slide As Fed Rate Cut Bets Intensify, Powell Speech Eyed Euro And Gold Instead Of Dollar? RBA Cut Rates To A Record Low | AUD Traders Await Lowe's Speech 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 48.6 50.6 50.5 9:00 EUR Eurozone Unemployment Rate Apr 7.60% 7.70% 7.70% 9:00 EUR Eurozone CPI Core Y/Y May A 0.80% 0.90% 1.30% 9:00 EUR Eurozone CPI Estimate Y/Y May 1.20% 1.30% 1.70% 14:00 USD Factory Orders Apr -0.90% 1.90%

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