Action Insight Mid-Day Report 4-23-20

Euro Downside Breakout after Terrible PMIs, Dollar Dragged by Jobless Claims

Action Insight Mid-Day Report 4-23-20 Euro Downside Breakout after Terrible PMIs, Dollar Dragged by Jobless Claims Euro suffers heavy selling in today on terrible PMI data, which suggests that the coronavirus pandemic damage could be far more severe than imaginable. The common currency drags down the Swiss Franc too. Dollar couldn't ride on Euro's weakness and even faces some selling after another set of astronomical jobless claims numbers. Commodity currencies are generally higher for today. For the week, Aussie and Yen are now the strongest ones while Sterling and Euro are the worst performing. Technically, EUR/JPY hits as low as 115.71 so far and sustained trading below 115.86 support will confirm medium term down trend resumption. Next target will be 109.48 (2016 low). EUR/AUD's break of 1.7003 support suggests resumption of whole fall from 1.9799. It should now target key support level at 1.6597 (2015 high). EUR/USD's break of 1.0768 support also suggests resumption of fall from 1.1147, towards 1.0635 low. 0.8681 temporary low in EUR/GBP will now be a focus for the rest of the week. In Europe, currently, FTSE is up 0.16%. DAX is down -0.02%. CAC is up 0.44%. German 10-year yield is down -0.0185 at 0.426. Earlier in Asia, Nikkei rose 1.52%. Hong Kong HSI rose 0.35%. China Shanghai SSE dropped -0.19%. Singapore Strait Times dropped -0.30%. Japan 10-year JGB yield dropped -0.0011 to -0.008. Full Report Here US initial jobless claims dropped to 4.4m, continuing claims rose to... BoE Vlieghe: In principle, economy should return approximately to the pre-virus... UK PMI composite dropped to 12.9, indicates quarterly GDP contraction of... Eurozone PMI composite dropped to 13.5, ferocity of slump surpassed imaginable Germany PMI composite dropped to 17.1, shocking picture of the pandemic's... France PMIs dropped to new record low, two areas to watch... Germany Gfk consumer sentiment cliff dived to -23.7, income expectations plunged Japan PMI composite dropped to 27.8, harsh economic effects likely to... Australia PMI manufacturing dropped to 45.6, services down to 19.5 Singapore expects sharper contraction after circuit breaker extension Top Movers | HeatMap | Pivot Points | Pivot Meters | Action Bias | Vol Canadian Dollar Weakness Expected to Catch Up with Recent Oil Price... WTI Crude Oil Price Dived to Negative as Oversupply Sparks Concerns... PBOC Cut Policy Rate to 3.85%, More Easing on the Way Central Bank Views | China Watch | Oil N' Gold | Special Topics EUR/JPY Mid-Day Outlook Daily Pivots: (S1) 116.27; (P) 116.74; (R1) 117.05; More.... EUR/JPY drops to as low as 115.72 so far. Intraday bias is back on the downside. Sustained trading below 115.86 low will confirm larger down trend resumption. Next near term target will be 100% projection of 121.14 to 116.33 from 119.00 at 114.19. On the upside, however, break of 117.21 minor resistance will indicate short term bottoming and turn bias to the upside for rebound. Full Report Here EURUSD | USDJPY | GBPUSD | USDCHF | AUDUSD | USDCAD EURJPY | EURGBP | EURCHF | EURAUD | GBPJPY Recommended Readings Gold's Positive Sentiment Picks Up; Eyes Multi-Year Top Horrible PMIs No Biggie, It Seems US 100 Index May Confirm Positive Bias Above 8,714 WTI Oil Outlook: Oil Price In Recovery Mode But Stronger Positive Signal Could Be Expected On Regain Of $20 Level US Dollar Index Ticks Up, Bullish In Medium Term EURUSD Bears Challenge Triangle To Get Full Control AUDUSD Cautiously Positive As It Nears Restrictive Trend Line Trump Threatens War With Iran, Lifts Oil Fundamental Analysis | Technical Analysis In-depth Reports Canadian Dollar Weakness Expected to Catch Up with Recent Oil Price Collapse Reserve Bank Governor's Speech Reveals Forecasts Very Close to Westpac's Views WTI Crude Oil Price Dived to Negative as Oversupply Sparks Concerns about Storage PBOC Cut Policy Rate to 3.85%, More Easing on the Way International Growth Outlook Continues to Darken China's GDP Contracted the Most in Decades as Driven its Self-Produced Coronavirus Economic Calendar GMT Ccy Events Actual Forecast Previous Revised 23:00 AUD CBA Manufacturing PMI Apr P 45.6 49.7 23:00 AUD CBA Services PMI Apr P 19.6 38.5 00:30 JPY Manufacturing PMI Apr P 43.7 44.8 03:00 NZD Credit Card Spending Y/Y Mar -8.20% 2.50% 2.20% 06:00 EUR Germany Gfk Consumer Confidence May -23.4 -2 2.7 06:00 GBP Public Sector Net Borrowing (GBP) Mar 2.3B 1.7B -0.4B 07:15 EUR France Manufacturing PMI Apr P 31.5 40 43.2 07:15 EUR France Services PMI Apr P 10.4 25.1 27.4 07:30 EUR Germany Manufacturing PMI Apr P 34.4 39.6 45.4 07:30 EUR Germany Services PMI Apr P 15.9 29 31.7 08:00 EUR Eurozone Manufacturing PMI Apr P 33.6 39 44.5 08:00 EUR Eurozone Services PMI Apr P 11.7 24.9 26.4 08:30 GBP Manufacturing PMI Apr P 32.9 42.5 47.8 08:30 GBP Services PMI Apr P 12.3 29.6 34.5 10:00 GBP CBI Industrial Trends Orders M/M Apr -56 -35 -29 12:30 USD Initial Jobless Claims (Apr 17) 4427K 5245K 5237K 13:45 USD Manufacturing PMI Apr P 48.5 13:45 USD Services PMI Apr P 39.8 14:00 USD New Home Sales Mar 661K 765K 14:30 USD Natural Gas Storage 73B

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