Action Insight Mid-Day Report 8-5-19

Risk Aversion Dominates Globally as Yuan Fall Drags Sentiments

Action Insight Daily Report 8-5-19 Risk Aversion Dominates Globally as Yuan Fall Drags Sentiments Global markets are dragged down by the steep decline in the Chinese Yuan today. Major European indices are all in deep red today, following the selloffs in Asia. DOW future is currently down over -1.4% or -370 pts. Treasury yields also suffer with German 10-year yield breaking -0.5 handle again. US 10-year yield is also sent below 1.8 handle. In the currency markets, Swiss Franc and Yen are among the strongest for today so far. Euro is a surprise as second strongest, probably as markets are expecting currency war between US and China. Meanwhile, Australian Dollar is the weakest one, followed by New Zealand and then Canadian. Technically, EUR/USD"s break of 1.1162 resistance suggests short term bottoming at 1.1026. Stronger rebound could be seen to 1.1282 resistance or above. EUR/GBP's break of 0.9190 resistance suggests rally resumption for 0.9305 key resistance. EUR/AUD also took out 1.6448 key resistance to resume recent rise for 1.6765. Though, EUR/CHF's decline is still in progress, without clear loss of momentum. In Europe, currently, FTSE is down -2.12%. DAX is down -1.59%. CAC is down -1.93%. German 10-year yield is down -0.0171 at -0.511. Earlier in Asia, Nikkei dropped -1.74%. Hong Kong HSI dropped -2.85%. China Shanghai SSE dropped -1.62%. Singapore Strait Times dropped -2.04%. Japan 10-year JGB yield dropped -0.0299 at -0.195. Full Report Here Trump accuses China of currency manipulation Eurozone Sentix dropped to -13.7, spectre of recession is going around UK PMI services rose to 51.4, 9-month high, economy stagnating at... Eurozone PMI Composite finalized at 51.5, scale of manufacturing downturn starting... China Caixin PMI services dropped to 51.8, economic slowdown is under... Australia AiG Performance of Services dropped sharply to 43.9, largest monthly... Chinese Yuan dives through 7 as China seen as weaponizing it... Top Movers | HeatMap | Pivot Points | Pivot Meters | Action Bias | Vol RBA Preview – Pausing (Not Ending) after Two Consecutive Rate Cuts CFTC Commitments of Traders – All Major Currencies in NET SHORT... CFTC Commitments of Traders – Traders Bet on Lower Crude Oil... Central Bank Views | China Watch | Oil N' Gold | Special Topics EUR/USD Mid-Day Outlook Daily Pivots: (S1) 1.1079; (P) 1.1098; (R1) 1.1125; More..... EUR/USD's rebound from 1.0126 extends higher today. Break of 1.1162 resistance suggests short term bottoming. Intraday bias is back on the upside for 55 day EMA (now at 1.1216) and above. But upside should be limited by 1.1282 resistance to bring fall resumption. On the downside, break of 1.1026 will extend the downtrend from 1.2555. Full Report Here EURUSD | USDJPY | GBPUSD | USDCHF | AUDUSD | USDCAD EURJPY | EURGBP | EURCHF | EURAUD | GBPJPY Recommended Readings RBA Preview: RBA May Be Forced For A Third Consecutive Rate Cut USDCNH Rocks To All-Time Highs, Overbought Warnings Detected CNY Depreciation Is Not Boding Well Yuan And Dollar As A Weapon In Trade Wars Gold Breaks Upper Boundary Of Trading Range, Prints New High Yen And Gold Soar, Yuan Sinks As Trade War Savages Markets Special Report: Bitcoin To Break This Year’s High, Here It Is Why | S&P 500 May Drop By 10% Heading From Trade War To Currency War? EURUSD Bounces Off 2-Year Lows But Downside Risks Remain Fundamental Analysis | Technical Analysis In-depth Reports FOMC Review - Market Disappointed as Powell Described Rate Cut as “Mid-Cycle Adjustment” FOMC Cuts Rates 25 Bps, But Two Members Dissent Brexit Monitor: There is Always a But Brexit Update - New PM, Old Challenge RBNZ: OCR Limbo... How LowCan It Go? Japan- Korea Trade Tensions - Removal of Preferential Treatment to Korea Signals Trade Tension Should Escalate Economic Calendar GMT Ccy Events Actual Forecast Previous Revised 22:30 AUD AiG Performance of Service Index Jul 43.9 52.2 1:00 AUD TD Securities Inflation M/M Jul 0.30% 0.00% 1:45 CNY Caixin PMI Services Jul 51.8 52 52 5:45 CHF SECO Consumer Confidence Jul -8 -8 -6 6:30 CHF Retail Sales Real Y/Y Jun 0.70% -0.60% -1.70% -1.10% 7:45 EUR Italy Services PMI Jul 51.7 50.6 50.5 7:50 EUR France Services PMI Jul F 52.6 52.2 52.2 7:55 EUR Germany Services PMI Jul F 54.5 55.4 55.4 8:00 EUR Eurozone Services PMI Jul F 53.2 53.3 53.3 8:30 EUR Eurozone Sentix Investor Confidence Aug -13.7 -7 -5.8 8:30 GBP Services PMI Jul 51.4 50.4 50.2 13:45 USD US Services PMI Jul F 52.2 14:00 USD ISM Non-Manufacturing/Services Composite Jul 55.5 55.1

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