Action Insight Weekly Report 7-13-19

Dollar Reversed, Stocks Made New Records on as Fed Cut Expectations Solidified

Action Insight Weekly Report 7-13-19 Dollar Reversed, Stocks Made New Records on as Fed Cut Expectations Solidified Dollar's fortune reversed again last week as expectations of Fed July rate cut re-intensified. Such expectations also pushed US equities to new record highs. However, global equities lagged behind, with major FTSE, CAC and Nikkei closed inside prior week's range. DAX even dropped sharply. Also, 10-year and 30-year US treasury yields rebounded, together with German 10-year bund yields, despite expectations of monetary easing from Fed and ECB. Staying in the currency markets, Sterling followed Dollar as the second weakest for the week, and then Canadian. New Zealand Dollar ended as the strongest one, followed by Swiss Franc and then Australian. Overall developments in the forex markets were rather mixed. Though, technically, there are a couple of points to note. USD/CAD broke near term support at 1.3037 and resumed recent fall from 1.3564. The case for medium term bearish reversal in the pair is building up. AUD/USD's strong rebound argues that recent rise from 0.6831 is still in progress and break of 0.7047 resistance would likely be seen very soon. Selloff in USD/JPY and USD/CHF also suggest that recent correct rebounds from 106.78 and 0.9695 have completed. Both pairs could retest recent lows soon. EUR/AUD's fall from 1.6448 also looks set to resume as corrective recovery from 1.6025 has completed last week. Full Report Here Central Bank Views | China Watch | Oil N' Gold | Special Topics USD/CAD Weekly Outlook USD/CAD's fall from 1.3564 resumed by breaking 1.3037 temporary low last week. Initial bias remains on the downside this week. Sustained trading below 1.3052/68 cluster support should confirm medium term reversal. Deeper decline should then be seen to 1.2781 support next. On the upside, break of 1.3143 resistance is needed to indicate short term bottoming. Otherwise, near term outlook will remain bearish in case of recovery. Full Report Here EURUSD | USDJPY | GBPUSD | USDCHF | AUDUSD | USDCAD EURJPY | EURGBP | EURCHF | EURAUD | GBPJPY Recommended Readings Weekly Economic and Financial Commentary: "To Call Something Hot, You Need to See Some Heat" The Weekly Bottom Line: Bank of Canada Signals High Bar to Cuts Forward Guidance: Inflation Data to Keep BoC on the Sidelines, For Now Week Ahead: Chinese and UK Data Take center Stage As Central Banks Move to Cut Rates Again, How Much Lower Can They Go? Week ahead – Flurry of Key Data Eyed as Markets Digest Powell's Cautiousness Cliff Notes: Consumer Sentiment Questions Effectiveness of Rate Cuts Fundamental Analysis | Technical Analysis In-depth Reports China's Strong Trade Surplus Driven by Contraction in Imports. Strong Inflation Unlikely Restrains Further Easing As Central Banks Move to Cut Rates Again, How Much Lower Can They Go? July a Done Deal for FOMC, with Risks Front of Mind Dovish FOMC Minutes Heighten the Case for July Rate Cut Q3 Outlook: Investing in a Late-Cycle Economy Australian Dollar: Iron Ore and Rates Remain Key Now and for the Outlook What Christine Lagarde As ECB President Means For the Euro ECB Research: Lagarde To Take 'One Of The Most Difficult' Jobs

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