Action Insight Mid-Day Report 7-24-19

Euro Dives as PMIs Solidify Case for ECB Easing

Action Insight Mid-Day Report 7-24-19 Euro Dives as PMIs Solidify Case for ECB Easing Euro tumbles sharply today as poor PMI data solidifies the case for ECB easing ahead. The central bank is not expected to act tomorrow yet, but some form of indications would likely be provided by President Mario Draghi, on what stimulus would be adopted. For now, Australian Dollar is even weaker as poor PMI data, with weak employment, argues for more RBA rate cut too. On the other hand, Sterling is the strongest one for today, partly helped by free fall in EUR/GBP. Also, the Pound continues to digest the impact of Boris Johnson as UK Prime Minister. Yen is the second strongest one. Dollar is mixed even though next week's US-China trade meeting in Shanghai is confirmed. Technically, EUR/GBP's strong break of 0.8954 confirms short term topping at 0.9501. The cross is now in a corrective phase which could dip below 55 day EMA at 0.8889. AUD/JPY is heading back to 75.13 support. Break will confirm completion of recent corrective recovery from 73.93 and bring retest of this low. In Europe, currently, FTSE is down -0.82%. DAX is up 0.31%. CAC is down -0.43%. German 10-year yield is down -0.0318 at -0.383. Earlier in Asia, Nikkei rose 0.41%. Hong Kong HSI rose 0.20%. China Shanghai SSE rose 0.80%. Singapore Strait Times dropped -0.14%. Japan 10-year JGB yield dropped -0.0002 to -0.148. Full Report Here US Mnuchin confirms to travel to Shanghai for trade negotiations next... Eurozone PMIs: Economy relapsed, GDP growth to slow further to 0.1%... Germany PMI manufacturing dropped to 84-mth low, from bad to worse France PMIs: Softer growth in July dents hopes of swift recovery... Asian update: AUD tumbles as RBA forecast to cut more, earlier Australia PMI composite dropped to 51.8, sharp fall in employment Japan PMIs: Fastest expansion in 7 months on services, but manufacturing... Top Movers | HeatMap | Pivot Points | Pivot Meters | Action Bias | Vol Brexit Update – New PM, Old Challenge ECB Preview – Expecting Change in Forward Guidance and Hints on... Sterling Might Bottom While Euro Would Stay Pressured, Dollar Indecisive Central Bank Views | China Watch | Oil N' Gold | Special Topics EUR/GBP Mid-Day Outlook Daily Pivots: (S1) 0.8944; (P) 0.8974; (R1) 0.8996; More... EUR/GBP drops sharply to as low as 0.8935 so far today. The strong break of 0.8954 support confirms short term topping. Fall from 0.9051 is seen as corrective rise from 0.8489. Intraday bias is back on the downside for 55 day EMA (now at 0.8891) and then 38.2% retracement of 0.8489 to 0.9051 at 0.8836. On the upside, above 0.8954 will turn intraday bias first. But deeper pull back would remain in favor as long as 0.9051 resistance holds. Full Report Here EURUSD | USDJPY | GBPUSD | USDCHF | AUDUSD | USDCAD EURJPY | EURGBP | EURCHF | EURAUD | GBPJPY Recommended Readings US Open – Boeing and Caterpillar Disappoint; Oil Steady ahead of EIA, Gold Awaits Easing Signals EUR/GBP Extends Falls On Soft Eurozone PMIs Ahead of ECB Trade Talk Boost Fades Quickly The IMF Provides Its Global Economic Review Special Report: Is Geopolitical Tensions Really Helping Oil Price? US Tech Antitrust Investigation Weighs On Markets US Dollar Index Completes 7-Week High In Ascending Channel GBPCAD 2-Month Tumble Moves Sideways Before Direction Unveiled AUDUSD Extends Downside Below 20-day SMA Euro Area PMIs Disappoint, Dollar Powers Through Competition EURJPY Plummets To New 6-Month Low, Bearish Profile Fundamental Analysis | Technical Analysis In-depth Reports Brexit Update - New PM, Old Challenge RBA to Cut Cash Rate to 0.75% in October & to 0.50% in February A Flashlight for the FOMC Blackout Period Slow Growth, Low Inflation: What's the ECB to Do? Economic Calendar GMT Ccy Events Actual Forecast Previous Revised 22:45 NZD Trade Balance Jun 365M 100M 264M 175M 23:00 AUD CBA PMI Manufacturing Jul P 51.4 52 23:00 AUD CBA PMI Services Jul P 51.9 52.6 0:30 JPY PMI Manufacturing Jul P 49.6 49.7 49.3 7:15 EUR France Manufacturing PMI Jul P 50 51.6 51.9 7:15 EUR France Services PMI Jul P 52.2 52.8 52.9 7:30 EUR Germany Manufacturing PMI Jul P 43.1 45.2 45 7:30 EUR Germany Services PMI Jul P 55.4 55.2 55.8 8:00 EUR Eurozone Manufacturing PMI Jul P 46.4 47.6 47.6 8:00 EUR Eurozone Services PMI Jul P 53.3 53.3 53.6 8:00 EUR Eurozone M3 Money Supply Y/Y Jun 4.50% 4.60% 4.80% 8:30 GBP BBA Loans for House Purchase Jun 42.7K 42.9K 42.4K 13:45 USD Manufacturing PMI Jul P 51 50.6 13:45 USD Services PMI Jul P 51.8 51.5 14:00 USD New Home Sales Jun 659K 626K 14:30 USD Crude Oil Inventories -3.1M

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