Action Insight Mid-Day Report 6-2-20

Focus Turns to Yen and Franc Selling as Risk Rally Continues

Action Insight Mid-Day Report 6-2-20 Focus Turns to Yen and Franc Selling as Risk Rally Continues Global stock markets continue with impressive rally today, with focuses on back-to-normal optimism. Germany's DAX is even more impressive, with more than 3.7% against at the time of writing, after a three-day break. It's supported by news that Chancellor Angela Merkel's ruling coalition is working on another massive stimulus package. Risks like US-China tensions are ignored. It seems that no-one even talk about the risk of coronavirus resurgence in the US, due to ongoing protests. In the currency markets, Dollar is in no doubt under heavy selling pressure. Yet, focus has shifted more to selling Yen and Swiss Franc. Australian Dollar remains the strongest one for today, followed by Sterling and then Canadian. Technically, USD/JPY's break of 108.08 suggests resumption of rise form 105.98 and reaffirm the case that correction from 111.71 has completed. Further rise would be seen to 109.38 resistance. EUR/JPY is eyeing 121.14 and break will put 122.87 key medium term resistance in focus. GBP/JPY's break of 135.74 resistance confirms resumption of whole rebound from 123.94. A focus would be whether rally in USD/JPY could help Dollar rebound from key support level against Euro, and Aussie. In Europe, FTSE is currently up 1.00%. DAX is up 3.71%. CAC is up 1.99%. Germany 10-year yield is down -0.002 at -0.406. Earlier in Asia, Nikkei rose 1.19%. Hong Kong HSI rose 1.11%. China Shanghai SSE rose 0.20%. Singapore Strait Times rose 2.38%. Japan 10-year JGB yield dropped -0.0002 to 0.010. Full Report Here AUD/JPY breaks medium term trend line resistance on strong risk appetite RBA kept cash rate and 3-yr AGS yield target at 0.25%,... Australia current account surplus widened to AUD 8.4B, impact of coronavirus... New Zealand terms of trade dropped -0.7% in Q1 as coronavirus... NASDAQ extends rally as Wall Street ignores US unrest Top Movers | HeatMap | Pivot Points | Pivot Meters | Action Bias | Vol New BOC Governor to Carry On Legacy, Keeping Rate and QE... CFTC Commitments of Traders – Euro Rallied to Highest in 2... CFTC Commitments of Traders – Traders Took Profit on Gold after... Central Bank Views | China Watch | Oil N' Gold | Special Topics USD/JPY Mid-Day Outlook Daily Pivots: (S1) 107.35; (P) 107.61; (R1) 107.83; More.. USD/JPY's rise from 105.98 resumed by breaking 108.08 resistance. Intraday bias is back on the upside for 109.38 resistance first. Corrective fall from 111.71 should have completed at 105.98 already. Break of 109.38 will target a test on 111.71 high. On the downside, break of 107.08 support will turn bias back to the downside for retesting 105.98 low instead. Full Report Here EURUSD | USDJPY | GBPUSD | USDCHF | AUDUSD | USDCAD EURJPY | EURGBP | EURCHF | EURAUD | GBPJPY Recommended Readings EUR/USD Outlook: Probe Above Key Fibo Barrier Exposes Next Strong Obstacles At 1.1221/24 Promising U.S. Economic Data USD Continues To Retreat As Markets Eye Recovery And Protests Continue WTI Oil Futures Hold Neutral After Ticking Up To A 12-Week High Equities Up, Dollar Down On Resilient Risk Appetite On Post-Covid Crisis AUD/USD Outlook: Aussie Is Holding Near Five-Month High After Unchanged RBA And Better Than Expected Data Bank Of Canada May Not Change Course As Macklem Takes The Helm EURJPY Plots Gains, Advances Conquer Bearish SMAs US Protests Rage On, Start To Weigh On Dollar USD/CNH Still Capped By Bearish Trend Line GBPUSD Ready To Hit 100-Day SMA After Strong Rally GBPCAD In Bearish Mode, Recedes Below 200-Day SMA 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 Economic Calendar GMT Ccy Events Actual Forecast Previous Revised 22:45 NZD Building Permits M/M Apr -6.50% -21.30% -21.70% 22:45 NZD Terms of Trade Index Q1 -0.70% 1.30% 2.60% 2.80% 23:50 JPY Monetary Base Y/Y May 3.90% 2.60% 2.30% 1:30 AUD Current Account (AUD) Q1 8.4B 6.3B 1.0B 1.7B 1:30 AUD Company Gross Operating Profits Q/Q Q1 1.10% 0.00% -3.50% 4:30 AUD RBA Interest Rate Decision 0.25% 0.25% 0.25% 6:30 CHF Real Retail Sales Y/Y Apr -19.90% -4.90% -5.60% -5.80% 7:30 CHF SVME PMI May 42.1 42.1 40.7 8:30 GBP Mortgage Approvals Apr 16K 34K 56K 8:30 GBP M4 Money Supply M/M Apr 1.50% 2.50% 2.80% 3.20%

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