Action Insight Weekly Report 5-17-20

Risk Rally Inconclusive, Dollar Index and Gold Range Bound

Action Insight Weekly Report 5-17-20 Negative Interest Rate Expectations Drove Markets, Risk Reversal TBC Soon The topic of negative central bank interest rates was a key driver in the forex markets last week. Dollar ended as the strongest one against a chorus of Fed officials expressed their objection. New Zealand Dollar, on the other hand, ended as the weakest as RBNZ was clearly preparing the system for negative rates. BoE Governor Andrew Bailey didn't have the support of colleagues like Powell. Sterling ended as second weakest on negative rates speculations too. US-China trade and political tension was another main theme in the making. Stocks displayed sign of bearish reversal on escalations of tensions. Gold and Silver's strong rally could also be partly, at least, attributed to risk aversion too. Gold's strength could also somewhat reflect Dollar's resilience. Overall, as discussed below, we should know if the risk sentiments are really in reversal pretty soon. Full Report Here Central Bank Views | China Watch | Oil N' Gold | Special Topics AUD/USD Weekly Outlook AUD/USD continued to stay in range of 0.6372/6569 last week and outlook is unchanged. Initial bias remains neutral this week first. Rebound from 0.5506 might still extend higher. But considering bearish divergence condition in 4 hour MACD, upside should be limited by 0.6670 key resistance, at least on first attempt. on the downside, break of 0.6372 should indicate confirm short term reversal and bring deeper fall to 38.2% retracement of 0.5506 to 0.6569 at 0.6163 first. Full Report Here EURUSD | USDJPY | GBPUSD | USDCHF | AUDUSD | USDCAD EURJPY | EURGBP | EURCHF | EURAUD | GBPJPY Recommended Readings UK: Keep Cautious and Carry On Weekly Economic and Financial Commentary: Q2 Likely to Be Worse for Global Economies The Weekly Bottom Line: The Economic Impact of COVID-19 On Full Display Forward Guidance: Canadian Consumers in Focus Week Ahead: Trump vs China Oil Market Week Ahead: Will Crude Drop Below Zero Again? Week Ahead – More Easing on the Way Japan Set to Enter Recession but Hope for Rebound as State of Emergency Lifted Week Ahead – Reopening Woes and Trade Fears Dent Sentiment Weekly Focus – Negative Rates Still Not Popular with Major Central Banks Fundamental Analysis | Technical Analysis In-depth Reports UK: Keep Cautious and Carry On With Interest Rates At Zero, What Will Drive FX Now? Could the U.S. Economy Be Facing Deflation? What to Expect from CCP's Two Sessions?

Action Forex Company Limited | Room 804, 8/F. , Prosperity Centre, 982 Canton Road, Mongkok, Kowloon 852 Hong Kong SAR China Unsubscribe mondemand.forex@blogger.com Update Profile | About Constant Contact Sent by contact@actionforex.com in collaboration with Try email marketing for free today!