Action Insight Mid-Day Report 8-28-19

Sterling Tumbles as Johnson Takes UK into Constitutional Crisis

Action Insight Mid-Day Report 8-28-19 Sterling Tumbles as Johnson Takes UK into Constitutional Crisis Sterling is back in focus today as UK is heading into constitutional with Prime Minister Boris Johnson's move to suspend the government. Risk aversion return of risk aversion also keep commodity currencies generally soft. On the other hand,Yen is generally stronger following further decline in major global treasury yields. Though, that was shrugged off by the also strong Dollar. Technically, GBP/USD's of 1.2208 minor support suggests that corrective recovery from 1.2014 has completed. Further decline would be seen back to retest this low. EUR/GBP drew support from 0.8891/9051 support zone and recovered. Focus is back on 0.9157 minor resistance. Break will indicate completion of fall from 0.9324 and bring retest of this high. GBP/JPY could retest 126.54 short term bottom ahead if Sterling's selloff worse. In Europe, currently FTSE is down -0.10%. DAX is down -0.91%. CAC is down -0.82%. German 10-year yield is down -0.0255 at -0.718. Earlier in Asia, Nikkei rose 0.11%. Hong Kong HSI dropped -0.19%. China Shanghai SSE dropped -0.29%. Singapore Strait Times dropped -0.36%. Japan 10-year JGB yield dropped -0.0047 to -0.271. Full Report Here UK Johnson's move to suspend government drew furious response from MPs UK government said to be asking Queen to suspend parliament Eurozone M3 rose 5.2%, solid growth in lending to households and... German Gfk consumer confidence unchanged, but economic outlook suffered a significant... RBNZ Orr: Lower interest rates offer greater certainty on the financial... Italy edging close to political resolutions Top Movers | HeatMap | Pivot Points | Pivot Meters | Action Bias | Vol China Cuts Banks' Lending Rates as Trade War Escalates CFTC Commitments of Traders – USD's Outlook Clouded by Trade War... CFTC Commitments of Traders – Crude Oil Price to Fall Again... Central Bank Views | China Watch | Oil N' Gold | Special Topics GBP/USD Mid-Day Outlook Daily Pivots: (S1) 1.2228; (P) 1.2269; (R1) 1.2329; More.... GBP/USD's break of 1.2208 minor support suggests corrective recovery from 1.2014 has completed at 1.2309 already. Intraday bias is turned back to the downside for retesting 1.2014 first. Break will resume larger down trend to 1.1946 low. On the upside, above 1.2309 will extend the recovery. But upside should be limited by 38.2% retracement of 1.3381 to 1.2014 at 1.2536 to bring down trend resumption. Full Report Here EURUSD | USDJPY | GBPUSD | USDCHF | AUDUSD | USDCAD EURJPY | EURGBP | EURCHF | EURAUD | GBPJPY Recommended Readings EUR/USD Coiled Like a Spring as Italian Political Situation Reaches Code Red US Open – Brexit Drama, PM Conte To Remain, Huge Oil Draw, And Gold's Bright Outlook RMB To Trend Lower, Italy's Coalition Talks Reassure GBPJPY Puts Upward Pattern In Standby Mode AUDUSD Remains Sideways, Multi-Year Lows In Sight Wall Street Retreats On Recession Fears, Oil Soars Gold Price To Touch $1,800 Markets Tepid As Investors Await Next Risk Catalyst Fundamental Analysis | Technical Analysis In-depth Reports China Cuts Banks' Lending Rates as Trade War Escalates Italy: Salvini May Have Thrown a Boomerang Can Monetary and Fiscal Stimulus Save the Global Economy from Trump's Trade War? Trade War, Not Protests, is Key Reason For Slowdown. USDHKD Peg Not at Risk RBA: 50bps in Cuts Look Assured But Global Factors May Require More Stimulus Will German Fiscal Stimulus Be Too Little, Too Late? Economic Calendar GMT Ccy Events Actual Forecast Previous Revised 23:01 GBP BRC Shop Price Index Y/Y Aug -0.40% -0.10% 1:30 AUD Construction Work Done Q2 -3.80% -1.00% -1.90% -2.20% 6:00 EUR German Import Price Index M/M Jul -0.20% -0.10% -1.40% 6:00 EUR German GfK Consumer Confidence Sep 9.7 9.6 9.7 8:00 EUR Eurozone M3 Money Supply Y/Y Jul 5.20% 4.70% 4.50% 14:30 USD Crude Oil Inventories -2.7M

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