Action Insight Mid-Day Report 1-6-20

Euro and Sterling Rebound on Economic Data, Risk Aversions Continue

Action Insight Mid-Day Report 1-6-20 Euro and Sterling Rebound on Economic Data, Risk Aversions Continue European majors stage a strong come back today as supported by positive data. Germany investor confidence recorded a strong rebound while UK PMI services was revised up. On the other hand, despite continuous risk aversion on Middle East tensions, Yen is pairing some of last week's gains. Dollar follows and turn soft too. Gold and oil prices are off day high but remain firm. Technically, EUR/USD is staying in consolidation from 1.1239 temporary top. Further rise is expected through this resistance. But we'd likely see some more consolidations first. EUR/JPY recovered strongly ahead of 119.99 support, maintaining near term bullishness. Further rise remains in favor through 122.65 resistance at a later stage. USD/CHF's recovery is held well below 0.9977 resistance and near term outlook stays bearish. In Europe, currently, FTSE is down -0.83%. DAX is down -1.27%. CAC is down -0.93%. German 10-year yield is down -0.0147 at -0.295, defending -0.3 handle. Earlier in Asia, Nikkei dropped -1.91%. Hong Kong HSI dropped -0.79%. China Shanghai SSE dropped -0.01%. Singapore Strait Times dropped -0.62%. Japan 10-year JGB yield dropped -0.0148 to -0.031. Full Report Here Germany still trying to save JCPoA, Iran nuclear deal UK PMI services finalized at 50.0, overall stagnation of UK economy... Eurozone investor confidence rose to 7.6, investors making advance concessions to... Eurozone PMI composite finalized at 52.8, worst quarter since 2013 China PMI services dropped to 52.5, overall economy continued to stabilize Japan PMI manufacturing finalized at 48.4, negatively contribute to GDP to... Williams: Fed has to stick to 2% inflation target WTI oil breaks 64, but strong resistance still expected from 66.49 Gold gaps up as Middle East tension escalates, heading to 1625 Top Movers | HeatMap | Pivot Points | Pivot Meters | Action Bias | Vol Yen, Gold and Oil Jumps as Geopolitical Risks Cloud Markets Oil Prices Jump after Airstrike in Iran. Impacts should be Short-Lived Trade War Continues to Direct the Outlook of Chinese Yuan Central Bank Views | China Watch | Oil N' Gold | Special Topics EUR/USD Mid-Day Outlook Daily Pivots: (S1) 1.1127; (P) 1.1154; (R1) 1.1182; More... EUR/USD rebounds strongly today but stays below 1.1239 temporary top. Intraday bias remains neutral first. With 1.1066 support intact, near term outlook stays bullish and further rally is in favor. On the upside, above 1.1239 will extend whole rally from 1.0879 to 100% projection of 1.0879 to 1.1179 from 1.0981 at 1.1281 next. However, on the downside, break of 1.1066 will suggest that whole rise from 1.0879 has completed. In this case, intraday bias will be turned back to the downside for 1.0981 support for confirmation. Full Report Here EURUSD | USDJPY | GBPUSD | USDCHF | AUDUSD | USDCAD EURJPY | EURGBP | EURCHF | EURAUD | GBPJPY Recommended Readings Market Brief: Mideast Tensions Remain Key Focus USD/JPY Outlook: Bears Are Taking A Breather But Outlook Remains Negative Middle East Rhetoric Maintains Oil Demand Vivid EUR/USD Outlook: The Euro Rises After Failure At Key Fibo Support, Boosted By Upbeat Data Gold Surges To Six-Year High As Risk-off Hedges Pile On Market Brief: Mideast Tensions Retain Their Grip On Sentiment Risk Off Continues As Middle East Tensions Escalate Fundamental Analysis | Technical Analysis In-depth Reports Oil Prices Jump after Airstrike in Iran. Impacts should be Short-Lived USDJPY to Firm in 1H20, Could Weaken as Uncertainties Resurface Later in the Year Trade War Continues to Direct the Outlook of Chinese Yuan A Phase One Trade Deal is Reached, What Does It Mean? Is the Fed on the Right Path? The 2020 Election and the Economy: Part II Economic Calendar GMT Ccy Events Actual Forecast Previous Revised 21:30 AUD AiG Performance of Mfg Index Dec 48.3 48.1 00:30 JPY Jibun Bank Manufacturing PMI Dec F 48.4 48.8 01:45 CNY Caixin Services PMI Dec 52.5 53.2 53.5 07:00 EUR Germany Retail Sales M/M Nov 2.10% 1.00% -1.90% 08:15 EUR Spain Services PMI Dec 54.9 53.9 53.2 08:45 EUR Italy Services PMI Dec 51.1 51.1 50.4 08:50 EUR France Services PMI Dec 52.9 52.4 52.4 08:55 EUR Germany Services PMI Dec 52.9 52 52 09:00 EUR Eurozone Services PMI Dec 52.8 52.4 52.4 09:30 EUR Eurozone Sentix Investor Confidence Jan 7.6 3 0.7 09:30 GBP Services PMI Dec 50 49.2 49 10:00 EUR Eurozone PPI M/M Nov 0.20% 0.00% 0.10% 10:00 EUR Eurozone PPI Y/Y Nov -1.40% -1.60% -1.90% 13:30 CAD Raw Material Price Index M/M Nov 1.50% -1.90% 13:30 CAD Industrial Product Price M/M Nov 0.40% 0.10% 14:45 USD Services PMI Dec F 52.2 52.2

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