Action Insight Weekly Report 1-4-20

Yen, Gold and Oil Jumps as Geopolitical Risks Cloud Markets

Action Insight Weekly Report 1-4-20 Yen, Gold and Oil Jumps as Geopolitical Risks Cloud Markets The financial markets took a roller-coaster ride as 2020 started with a bang. US stocks jumped to new record higher to celebrate new year. But sentiments took a great turn after abrupt escalation in Middle-East tensions. Safe-haven flows into Gold, Yen and US treasuries came in unison. Oil prices also surged in response. In the currency markets, Yen and Canadian Dollar were the strongest ones last week. New Zealand Dollar and Australian Dollars were the weakest, followed by Euro. Dollar was somewhat caught in the middle. The greenback somewhat staged a strong rebound against Sterling, Euro, Aussie and Kiwi. But it also suffered steep selloff against Yen and Loonie. Looking ahead, we'd expect risk aversion and falling yields stay as hindrance to Dollar's rebound attempt. Meanwhile, Australian Dollar is probably setting up for deep fall should risk aversion intensifies. Full Report Here Central Bank Views | China Watch | Oil N' Gold | Special Topics GBP/JPY Weekly Outlook GBP/JPY reversed after recovery to 144.36 last week and breached 141.15 on subsequent fall. The development suggests that corrective fall from 147.95 short term top is resuming. Initial bias is mildly on the downside this week for 38.2% retracement of 126.54 to 147.95 at 139.77. At this point, we'd expect strong support from 139.31/77 to bring rebound. But in any case, risk will stay on the downside as long as 144.36 resistance holds, in case of recovery. Sustained break of 139.77 will pave the way to 61.8% retracement at 134.71. Full Report Here EURUSD | USDJPY | GBPUSD | USDCHF | AUDUSD | USDCAD EURJPY | EURGBP | EURCHF | EURAUD | GBPJPY Recommended Readings Weekly Economic and Financial Commentary: Geopolitical Developments Ring in the New Year The Weekly Bottom Line: A Risk-Filled Start to the Year Oil Market Week Ahead: Iran's Possible Scenarios Gold – A Thing of Beauty Week Ahead – Middle East Tensions, Global Deflationary Pressures, US Jobs Report in Focus FX Year Ahead 2020: Turnaround or Same Old Blues? Week Ahead – US Jobs Report to Heat Things Up After Holiday Snooze 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

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