Action Insight Mid-Day Report 4-29-20

Dollar Weakness Continues after GDP Contraction, FOMC Next

Action Insight Mid-Day Report 4-29-20 Dollar Weakness Continues after GDP Contraction, FOMC Next Dollar's weakness continues today as largest GDP contraction in more than a decade gives no help. A wave of selling is seen in Sterling in European session. Yet there was no sustainable momentum so far. Yen is follow as the third weakest on mild yet solid risk appetite. Commodity currencies are currently strongest. Focus will turn to FOMC rate decision next. Fed is generally expected to keep monetary policies unchanged today. There will be no formal economic projections until June, which is agreeable as everything ties to how the coronavirus pandemic is contained. Nevertheless, Fed chair Jerome Powell could still offer a glimpse of what he expected in the second half, and he view on the shape of the recovery. Guidance on interest rates would be something to watch too. Powell has ruled out negative rates for now and we'll see if he sticks to the same position. Suggested readings: FOMC to Highlight Weakness in Economy and Reinforce Dovish Stance in April Meeting Fed Meeting: Taking A Breather In other markets, DOW is current up nearly 400 pts at initial trading. Gold is gyrating in tight range around 1700 handle. WTI crude oils is having a solid rebound, back above 15. In Europe, FTSE is up 2.08%. DAX is up 1.84%. CAC is up 1.40%. German 10-year yield is down -0.0283 at -0.496. Earlier in Asia, Nikkei dropped -0.06%. Hong Kong HSI rose 0.28%. China Shanghai SSE rose 0.44%. Singapore Strait Times rose 0.46%. Japan 10-year JGB yield dropped -0.0075 to -0.045. Full Report Here US GDP shrank -4.8% in Q1, worst since 2008 UK Raab: No intention of changing Brexit transition period Eurozone economic sentiment crashed to 67, but stays above 2009 low Dollar index range bound as US GDP and Fed awaited New Zealand imports and exports surged in March, but trade with... Australia CPI jumped to 2.2% in Q1, highest since 2014 Fitch downgrades Italy rating to BBB-, significant impact of coronavirus on... Top Movers | HeatMap | Pivot Points | Pivot Meters | Action Bias | Vol ECB to Send a Dovish Tone and Pledge to Take Further... BOJ's QE Expansion Likely Ineffective Despite Pledge of Unlimited Purchases FOMC to Highlight Weakness in Economy and Reinforce Dovish Stance in... Central Bank Views | China Watch | Oil N' Gold | Special Topics USD/CHF Mid-Day Outlook Daily Pivots: (S1) 0.9714; (P) 0.9757; (R1) 0.9793; More... Intraday bias in USD/CHF remains neutral with focus on 0.9712 minor support. Break there will extend the consolidation pattern from 0.9901 with another falling leg. Intraday bias will be turned to the downside for 0.9592 support first. In this case, downside should be contained by 61.8% retracement of 0.9181 to 0.9901 at 0.9456 to rebound. On the upside, break of 0.9502 will target a test on 0.9901 high. Full Report Here EURUSD | USDJPY | GBPUSD | USDCHF | AUDUSD | USDCAD EURJPY | EURGBP | EURCHF | EURAUD | GBPJPY Recommended Readings US GDP Down in Q1 Already on Virus Disruptions US Futures Rising ahead of Fed, Watch GOOGL, BA, GE, F, SBUX, HAS Big Bro Fed Got Your Back AUDJPY Turns Neutral As Recovery Continues EURGBP In A Sideways Tone, Still Bearish In Medium-Term AUD/USD Outlook: Aussie Extends Advance To Seven-Week High On Fresh Risk Sentiment NZDUSD Pushes Above Trendline But Needs To Face Another Key Barrier Scary Present Vs Bright Future Gold Consolidates Below Multi-Year Top EURUSD Neutral In Short-Term But Still Bearish In Medium-Term Italy Is Downgraded Fundamental Analysis | Technical Analysis In-depth Reports Crude Reality Monitoring The International Impact Of COVID-19 RBNZ OCR to Go Negative Later this Tear Oil Drowns in a Flood of Supply, No Lifejacket for Now The RBA's Target Cash Rate is Likely to Hold at 0.25% Until End 2023 Canadian Dollar Weakness Expected to Catch Up with Recent Oil Price Collapse Economic Calendar GMT Ccy Events Actual Forecast Previous Revised 22:45 NZD Trade Balance (NZD) Mar 672M 700M 594M 531M 23:01 GBP BRC Shop Price Index Y/Y Mar -0.70% -0.80% 01:30 AUD CPI Q/Q Q1 0.30% 0.20% 0.70% 01:30 AUD CPI Y/Y Q1 2.20% 2.00% 1.80% 01:30 AUD RBA Trimmed Mean CPI Q/Q Q1 0.50% 0.40% 0.40% 0.50% 01:30 AUD RBA Trimmed Mean CPI Y/Y Q1 1.80% 1.60% 1.60% 06:00 EUR Germany Import Price Index M/M Mar -3.50% -2.30% -0.90% 08:00 CHF ZEW Survey - Expectations Apr 12.7 -45.8 09:00 EUR Eurozone Economic Sentiment Apr 67 75 94.5 94.2 09:00 EUR Eurozone Services Sentiment Apr -35 -2.2 -2.3 09:00 EUR Eurozone Consumer Confidence Apr F -22.7 -22.7 -22.7 09:00 EUR Eurozone Industrial Confidence Apr -30.4 -25 -10.8 -11.2 09:00 EUR Eurozone Business Climate Apr -1.81 -0.28 09:00 EUR Eurozone M3 Money Supply Y/Y Mar 7.50% 5.50% 5.50% 12:00 EUR Germany CPI M/M Apr P 0.30% 0.00% 0.10% 12:00 EUR Germany CPI Y/Y Apr P 0.80% 0.60% 1.40% 12:30 USD GDP Annualized Q1 P -4.80% -4.00% 2.10% 12:30 USD GDP Price Index Q1 P 1.40% 1.00% 1.40% 1.30% 14:00 USD Pending Home Sales M/M Mar -10.00% 2.40% 14:30 USD Crude Oil Inventories 11.2M 15.0M 18:00 USD Fed Interest Rate Decision 0.25% 0.25% 18:30 USD FOMC Press Conference

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