Action Insight Mid-Day Report 3-5-20

Stock Market Roller Coaster Ride Continues With Another Red Day, Dollar Capped by Fed Cut Bets

Action Insight Mid-Day Report 3-5-20 Stock Market Roller Coaster Ride Continues With Another Red Day, Dollar Capped by Fed Cut Bets Commodity currencies are back under pressure today, led by Aussie, as Europe equities are back in red. DOW futures point to a deep gap down. Wuhan coronavirus pandemic continues to spread all over the world and it's accelerating. Yen and Swiss Franc are the strongest today, followed by a recently turned safe-haven Euro. Dollar is mixed as it's rally attempts are capped by expectation of more Fed rate cut. Even after this week's -50bps cut, fed funds futures are pricing in 47 chance of another -50bps cut on March 18, and 52.5% chance of a -25bps cut. That is, a cut is fully priced in, just a matter of size. South Korea's cases showed no sign of slowing, reaching 6088, with 40 deaths. Iran surpassed Italy as number two affected country outside China, with 3513 cases and 107 deaths. In Europe, Italy remain the most serious one with 3089 cases and 107 deaths. Germany, with 444 cases is catching up, while France has 285 cases and 4 deaths, Spain has 248 cases and 3 deaths Switzerland (95) and UK (90) will likely break 100 soon. 361 cases are reported Japan so far, 162 in the US. In Europe, currently, FTSE is down -1.96%. DAX is down -2.03%. CAC is down -2.16%. German 10-year yield is down -0.0186 at -0.655. Earlier in Asia, Nikkei rose 1.09%. Hong Kong HSI rose 2.08%. China Shanghai SSE rose 1.99%. Singapore Strait Times dropped -0.22%. Japan 10-year JGB yield rose 0.0295 to -0.111. Full Report Here Serious divergences between EU and UK for post Brexit relationships US initial jobless claims dropped to 216k, matched expectations 76% of UK firms expect Brexit uncertainty to persist until at... BDI: German industrial sector to stay in recession this year Italy to spend EUR 5B on coronavirus support IMF: Global growth in 2020 will be lower than 2.9% Bullard: Fed positioned for a fairly large coronavirus outbreak already BoC cut interest rate by -50bps to 1.25%, coronavirus a material... Top Movers | HeatMap | Pivot Points | Pivot Meters | Action Bias | Vol Fed's Emergency Cut Reveals the Lack of Tools to Deal with... RBA Cut Rate to 0.5%, Being the First Central Bank to... China's PMIs Dived in February, Just First Glimpse of the Disastrous... Central Bank Views | China Watch | Oil N' Gold | Special Topics EUR/USD Mid-Day Outlook Daily Pivots: (S1) 1.1091; (P) 1.1139; (R1) 1.1182; More... Intraday bias in EUR/USD remains neutral with focus on 1.1239 key resistance. Decisive break of 1.1239 will confirm medium term bottoming at 1.0777 and turn outlook bullish.. On the downside, break of 1.1038 minor support will turn bias back to the downside for retesting 1.0777 low. That would also retain near term bearishness. Full Report Here EURUSD | USDJPY | GBPUSD | USDCHF | AUDUSD | USDCAD EURJPY | EURGBP | EURCHF | EURAUD | GBPJPY Recommended Readings EURCAD Rises to 9-month Peak above 1.5000 OPEC Agreement Hangs On Russia, Stocks Lower On Travel Curbs, Gold Shines NZDUSD Lies Near 23.6% Fibonacci, Corrects Higher In Near Term Stocks Reverse Early Gains Stocks Bounce Back But Virus Risks Cap Dollar Gains EURGBP Gives Up Rally Near 200-Day SMA $7.8bn Fiscal Stimulus Package Boosts US Equities, OPEC Meets Is The Correction In Stocks Over? Fundamental Analysis | Technical Analysis In-depth Reports FOMC to Make Three 0.25% Cuts by June Bank of Canada Delivers A (Double) Coronavirus Cut Fed Monitor: We Expect Easing of a Further 50bp During the Spring RBA Cut Rate to 0.5%, Being the First Central Bank to Ease Due to Coronavirus Update on COVID-19 Impacts on the Economic Outlook China's PMIs Dived in February, Just First Glimpse of the Disastrous Impact of Coronavirus Outbreak Update on Coronavirus and Global Central Bank Outlook Change Of OCR Call: RBNZ To Cut 25Bp In March Economic Calendar GMT Ccy Events Actual Forecast Previous Revised 00:30 AUD Trade Balance (AUD) Jan 5.21B 4.80B 5.22B 5.38B 12:30 USD Challenger Job Cuts Y/Y Jan -26.30% 27.80% 13:30 USD Initial Jobless Claims (Feb 28) 216K 216K 219K 13:30 USD Nonfarm Productivity Q4 1.20% 1.40% 1.40% 13:30 USD Unit Labor Costs Q4 0.90% 1.40% 1.40% 15:00 USD Factory Orders M/M Jan -0.30% 1.80% 15:30 USD Natural Gas Storage -112B -143B

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