Action Insight Weekly Report 2-1-20

Bets on Fed Cut Surged on China's Coronavirus Outbreak; Stocks, Yields & Dollar Tumbled

Action Insight Weekly Report 2-1-20 Bets on Fed Cut Surged on China's Coronavirus Outbreak; Stocks, Yields & Dollar Tumbled Fear of China's coronavirus outbreak was the major theme in the global markets last week. At the time of writing, number of confirmed cases were close to 12000. While the majority of the infected in China, the virus has spread to at least 23 countries already. And, most important, there appears to be no sign of a slow down yet. Global equities suffered crash-mode selloff while safe haven flows pushed bond yields sharply lower. In the currency markets commodity currencies ended as the weakest naturally, with Australian Dollar leading the way. European majors were the strongest, as led by Sterling. However, it should be noted that after late selloff, Dollar has indeed ended as the fourth weakest. Traders drastically increased their bets on a Fed rate cut, on follow stocks and yields, as well ass worsening yield curve inversion. There are also talks that China wouldn't be able to fulfil it's trade obligations to the US considering the trouble it's facing. Full Report Here Central Bank Views | China Watch | Oil N' Gold | Special Topics EUR/USD Weekly Outlook EUR/USD edged lower to 1.0992 but rebounded strongly ahead of 1.0981 support. Break of 1.1085 resistance suggests that fall form 1.1239 is a corrective pull back that has completed with three waves down to 1.0992. More importantly, rise from 1.0879 is probably not over. Initial bias is back on the upside this week for retest 1.1239. On the downside, below 1.1056 minor support will turn bias back to the downside for 1.0981 support instead. Full Report Here EURUSD | USDJPY | GBPUSD | USDCHF | AUDUSD | USDCAD EURJPY | EURGBP | EURCHF | EURAUD | GBPJPY Recommended Readings Coronavirus: Gauging the Economic Impact Weekly Economic and Financial Commentary: Fed Keeps Rates on Hold as GDP Growth Remains Sturdy The Weekly Bottom Line: As One Source of Uncertainty Fades, Another Intensifies Forward Guidance: Coronavirus to Overshadow Early‑2020 Data Coronavirus, Weaker PPI hitting AUD/USD Week Ahead: Coronavirus Continues to Remain Market Focus Oil Market Week Ahead: "Shanghai-ed" by the Virus The Week Ahead – Virus Saga Continues, Iowa Caucuses are Here, RBA to Deliver Dovish Hold, and US NFP to See Slight Rebound Week Ahead – RBA Meeting and US Payrolls in Focus as Virus Worries Linger RBA on Hold; to Cut 2020 Growth Forecast from 2.8% to 2.6% Cliff Notes: a Week of Concern Weekly Focus: Britain Leaves the EU, Coronavirus Fears Spread Fundamental Analysis | Technical Analysis In-depth Reports Coronavirus: Gauging the Economic Impact Early Signs Of Slowdown In Spread Of Coronavirus Coronavirus Impact on the Chinese Economy An Early Read on the Coronavirus Risk Research China: Uncertainty on the Rise on the Back of Corona Virus One Big Reason Traders May STILL Be Underestimating Coronavirus Risks

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