Action Insight Mid-Day Report 5-13-20

Dollar Dips on PPI, Supported by Fed Powell

Action Insight Mid-Day Report 5-13-20 Dollar Dips on PPI, Supported by Fed Powell Dollar stays generally soft today so far but weakness is relatively limited. Some selling pressure was seen as poor PPI inflation data. But Fed chair Jerome Powell's comments on negative interest rates is giving the greenback a slight pop. For now, New Zealand Dollar remains the worst performing one for today after RBNZ's QE expansion. Canadian Dollar and Sterling are the stronger ones. Technically, Gold might be a focus today as range of converging triangle continues to narrow. A break out should be imminent and break of 1723.36 minor resistance will target 1747.75 high. Break will resume rise form 1451.16. Sterling will also be a focus as the post GDP recovery quickly lost steam. Break of 1.2247 support in GBP/USD will indicate completion of rebound from 1.1409 and turn outlook bearish. Break of 0.8863 resistance in EUR/GBP will also indicate short term bottoming and bring rebound to 0.8987 fibonacci level. In other markets, DOW opens lower and is currently down more than -200pts at the time of writing. In Europe, FTSE is down -1.34%. DAX is down -2.00%. CAC is down -2.23%. German 10-year yield is down -0.0137 at -0.519. Earlier in Asia, Nikkei dropped -0.49%. Hong Kong HSI dropped -0.27%. China Shanghai SSE rose 0.22%. Singapore Strait Times dropped -0.61%. Japan 10-year JGB yield rose 0.0048 to -0.001. Full Report Here Fed Powell: Additional fiscal support is a tradeoff for elected representatives Fed chair Powells' speech on current economic issues US PPI dropped -1.3% mom in April, worst since 2009 Eurozone industrial production dropped -11.3% in March UK Sunak not surprised by coronavirus hit economy contraction UK GDP dropped -2% in Q1, worst since 2008, with record... Australia Westpac consumer sentiment jumped 16.4%, genuine reason for optimism Fed Mester doesn't want to use negative rates NZD/USD and NZD/JPY dip after RBNZ, eyeing near term support RBNZ raises QE limit to NZD 60B, negative rate a future... Top Movers | HeatMap | Pivot Points | Pivot Meters | Action Bias | Vol China's Inflation Slowed Further in April, Giving Room for Further Easing RBNZ to Maintain Dovish Tone in May, Preparing for QE Expansion Risk Rally Inconclusive, Dollar Index and Gold Range Bound Central Bank Views | China Watch | Oil N' Gold | Special Topics GBP/USD Mid-Day Outlook Daily Pivots: (S1) 1.2216; (P) 1.2297; (R1) 1.2337; More.... Focus remains on 1.2247 support in GBP/USD. Firm break there will complete a double top (1.2647, 1.2645) pattern. That would suggest completion of corrective rebound from 1.1409. Intraday bias will be turned back to the downside for retesting this low. On the upside, break of 1.2647 will resume the rebound from 1.1409 to 1.3200 resistance next. Full Report Here EURUSD | USDJPY | GBPUSD | USDCHF | AUDUSD | USDCAD EURJPY | EURGBP | EURCHF | EURAUD | GBPJPY Recommended Readings Mixed Feelings on Lockdown Easing EURGBP Restrained Within Confines of Trading Range; SMAs Uncertain US Futures Slightly Up Before Powell Speech, Watch LVS, PNC, BLK, KKR, UBER, RCL AUD/USD Outlook: Aussie Regains Traction And Advances Ahead Of Fed Powell's Speech Gold Trades Within Symmetrical Triangle, Outlook Neutral GBP/USD Outlook: Not As Bad As Expected UK GDP Slows Bears USDJPY Struggles In Descending Mode, 20-Day SMA Next Support NZDUSD Loses Positive Steam, Eases To 50-Day SMA RBNZ Flags Negative Rates, Powell Expected To Do Opposite RBNZ Expands QE Program, NZD Weakens U.S. Dollar In Front Of Negative Rates Fundamental Analysis | Technical Analysis In-depth Reports China's Inflation Slowed Further in April, Giving Room for Further Easing What to Expect from CCP's Two Sessions? Economic Calendar GMT Ccy Events Actual Forecast Previous Revised 23:01 GBP BRC Retail Sales Monitor Y/Y Apr 5.70% -15.00% -3.50% 23:50 JPY Bank Lending Y/Y Apr 3.00% 2.10% 2.00% 23:50 JPY Current Account (JPY) Mar 0.94T 1.29T 2.38T 2.35T 00:30 AUD Westpac Consumer Confidence May 16.40% -17.70% 01:30 AUD Wage Price Index Q/Q Q1 0.50% 0.50% 0.50% 02:00 NZD RBNZ Interest Rate Decision 0.25% 0.25% 0.25% 03:00 NZD RBNZ Press Conference 05:00 JPY Eco Watchers Survey: Current Apr 7.9 4.2 14.2 06:00 GBP GDP Q/Q Q1 P -2.00% -2.00% 0.00% 06:00 GBP GDP M/M Mar -5.80% -7.00% -0.10% -0.20% 06:00 GBP Manufacturing Production M/M Mar -4.60% -5.60% 0.50% 0.30% 06:00 GBP Manufacturing Production Y/Y Mar -9.70% -4.00% -3.90% 06:00 GBP Industrial Production M/M Mar -4.20% -5.80% 0.10% 06:00 GBP Industrial Production Y/Y Mar -8.20% -9.20% -2.80% 06:00 GBP Index of Services 3M/3M Mar -1.90% -2.50% 0.20% 06:00 GBP Goods Trade Balance (GBP) Mar -12.5B -10.0B -11.5B -9.8B 09:00 EUR Eurozone Industrial Production M/M Mar -11.30% -12.00% -0.10% 12:30 USD PPI M/M Apr -1.30% -0.50% -0.20% 12:30 USD PPI Y/Y Apr -1.20% -0.40% 0.70% 12:30 USD PPI Core M/M Apr -0.30% 0.00% 0.20% 12:30 USD PPI Core Y/Y Apr 0.60% 0.90% 1.40% 13:00 GBP NIESR GDP Estimate Apr -4.80% 14:30 USD Crude Oil Inventories 4.1M 4.6M

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