Action Insight Weekly Report 5-31-20

Old and New Risks Ignored So Far, Dollar to Decide Reversal or Not Soon

Action Insight Weekly Report 5-31-20 Old and New Risks Ignored So Far, Dollar to Decide Reversal or Not Soon Some old and new global risks, other than coronavirus, have been (re-)emerging in recent weeks. US-China relation is heading another step towards cold war with US President Donald Trump's new set of measures against China announced on Friday. Unrest that started in Minneapolis quickly spread from Los Angeles to Miami to Chicago, with a "I can't breathe" movement. Brexit negotiations continue to head nowhere. There is no noticeable improvement in coronavirus containment in Brazil, Mexico, nor Russia. But these risks weren't much reflected in the financial markets. Instead, Australian Dollar ended last week as the strongest one, with much strength seen New Zealand Dollar and Canadian too. Euro was the second strongest as traders cheered the Next Generation EU recovery plan. On the other hand, Yen, Dollar and Swiss Franc were the worst performing ones. The Dollar index is now sitting in an important near term support zone and should reveal whether it's ready to reverse the medium term soon. As for risk markets, there won't be any sign of topping unless until some near term support levels are taken out firmly. Full Report Here Central Bank Views | China Watch | Oil N' Gold | Special Topics EUR/USD Weekly Outlook EUR/USD surges to as high as 1.1145 last week as consolidation pattern form 1.0635 extended with another rise. Initial bias stays on the upside this week. But we'd expect upside to be limited by 61.8% retracement of 1.1496 to 1.0635 at 1.1167. On the downside, below 1.1008 resistance turned support will turn intraday bias to the downside for 1.0870 support. However, sustained break of 1.1167 will pave the way to 1.1496 key resistance next. Full Report Here EURUSD | USDJPY | GBPUSD | USDCHF | AUDUSD | USDCAD EURJPY | EURGBP | EURCHF | EURAUD | GBPJPY Recommended Readings Effects of U.S. Supply Chain Re-Orientation: Part I Weekly Economic and Financial Commentary: The U.S. Economy Appears to Have Bottomed in The Weekly Bottom Line: Spending Plunges but Fiscal Supports Boost Income Forward Guidance: Capturing a Turning Point Week Ahead: Show Me the Money! Oil Market Week Ahead: Another Round of OPEC Wrangling Week Ahead – Sino-US Tensions Come to the Fore RBA Meets as Australia Reopens for Business, Aussie Rallies Week Ahead – ECB, RBA, and BoC meetings ahead of nonfarm payrolls Weekly Focus – Global Recovery as "Old Risks" Re-emerge Fundamental Analysis | Technical Analysis In-depth Reports Effects of U.S. Supply Chain Re-Orientation: Part I ECB Research: PEPP'in It Up Gold will Regain Momentum after Correction, Supported by Low Yield and US-China Tensions Have Stocks 'Gotten Over' the Virus? Australia's Risks With Its Exports to China A Matter Of When, Not If – Updated Forecasts Of The RBNZ's OCR And LSAP

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