Action Insight Mid-Day Report 4-18-18
| Action Insight Mid-Day Report 4-18-18 | | Sterling Lost Ground and CPI Trend Raises Doubt on BoE May Hike | Sterling is the biggest loser today after CPI missed market expectations. Most importantly, it's the steep trend of slow down in inflation, from 3% in January to 2.5% in March that raised doubts on a BoE May hike. The Pound stabilized a bit after initial selloff. For the moment, it's sill holding above 1.4144 minor support against Dollar, 151.15 minor support against Yen. EUR/GBP also stays below 0.8739 minor resistance. Sterling remains technically in near term up move, but the picture is not looking too well. Elsewhere in the currency markets, Canadian Dollar is trading mixed as BoC rate decision is awaited. Euro is trading as the strongest one for today and for the week. Swiss Franc turned mixed but remains the weakest one for the day. Dollar is mildly higher against most currencies except Euro and Aussie. |  | GBP/USD Mid-Day Outlook Daily Pivots: (S1) 1.4255; (P) 1.4316; (R1) 1.4350; More... GBP/USD's decline from 1.4376 accelerated to as low as 1.4172 today. But it's holding above 1.4144 minor support so far. Intraday bias remains neutral first. Another rise is still mildly in favor as long as 1.4144 minor support holds. But break of 1.4376 is needed to confirm up trend resumption. In that case, GBP/USD would target 61.8% projection of 1.3038 to 1.4345 from 1.3711 at 1.4519. Before that, more consolidation would be seen. And on the downside, firm break of 1.4144 will be and early sign of medium term topping and turn focus back to 1.3965 support. |  | | GMT | Ccy | Events | Actual | Forecast | Previous | Revised | | 23:50 | JPY | Trade Balance (JPY) Mar | 0.12T | 0.10T | -0.20T | -0.21T | | 00:30 | AUD | Westpac Leading Index M/M Mar | -0.20% | | 0.29% | 0.40% | | 08:30 | GBP | CPI M/M Mar | 0.10% | 0.30% | 0.40% | | | 08:30 | GBP | CPI Y/Y Mar | 2.50% | 2.70% | 2.70% | | | 08:30 | GBP | Core CPI Y/Y Mar | 2.30% | 2.50% | 2.40% | | | 08:30 | GBP | RPI M/M Mar | 0.10% | 0.30% | 0.80% | | | 08:30 | GBP | RPI Y/Y Mar | 3.30% | 3.50% | 3.60% | | | 08:30 | GBP | PPI Input M/M Mar | -0.10% | 0.30% | -1.10% | -0.40% | | 08:30 | GBP | PPI Input Y/Y Mar | 4.20% | 4.20% | 3.40% | 3.80% | | 08:30 | GBP | PPI Output M/M Mar | 0.20% | 0.10% | 0.00% | | | 08:30 | GBP | PPI Output Y/Y Mar | 2.40% | 2.30% | 2.60% | | | 08:30 | GBP | PPI Output Core M/M Mar | 0.10% | 0.20% | 0.20% | 0.30% | | 08:30 | GBP | PPI Output Core Y/Y Mar | 2.30% | 2.20% | 2.40% | | | 08:30 | GBP | House Price Index Y/Y Feb | 4.40% | 4.50% | 4.90% | 4.70% | | 09:00 | EUR | Eurozone CPI M/M Mar | 1.00% | 1.00% | 0.20% | | | 09:00 | EUR | Eurozone CPI Y/Y Mar F | 1.40% | 1.40% | 1.40% | | | 09:00 | EUR | Eurozone CPI Core Y/Y Mar F | 1.00% | 1.00% | 1.00% | | | 14:00 | CAD | BoC Rate Decision | | 1.25% | 1.25% | | | 14:30 | USD | Crude Oil Inventories | | | 3.3M | | | 18:00 | USD | Federal Reserve Beige Book | | | | | | | |
