Tools for Traders Top Movers | Heat Map | Pivot Point | Pivot Meters | Action Bias | Volatility Charts Action Insight Mid-Day Report: Euro Selling Gathers Momentum against Dollar and Canadian, EUR/USD Breaks 1.2285 Finally EUR/USD finally breaks 1.2285 support with some momentum in early US session. That could be seen as a sign that the forex traders are finally back from holiday, and starting to commit on a position. Events earlier today were important, but non-market moving. PMI data from UK and Eurozone were ignored. And RBA rate decision was like a non-event. With the selloff in EUR/USD now gathering steam, volatility could finally spread to other pairs and crosses. First Renminbi Crude Oil Futures Unlikely Accelerates Currency Internationalization On March 26, China launched its, and also the world's, first renminbi-denominated crude oil futures. The debut appeared successful with 20M barrels of oil changed hands on average in each of the first two trading days. This represents 3% of combined WTI and Brent volumes on these days. The futures attracted both international commodity traders as well as China's state-owned oil companies. While we agree that further liberalization of China's financial markets would promote the use of its currency – renminbi, the lack of transparency of the currency's pricing mechanism and the unpredictable government policies suggest that the road to renminibi internationalization remains a protracted one. RBA Aware of Recent Rise in Yields The April RBA meeting contained little surprise. Policymakers left the cash rate unchanged at 1.5% and made few changes in the policy statement. The central bank remained upbeat on growth and employment. Yet, it remained wary of the slow growth in wage. Meanwhile, the members took note of the recent decline in commodity prices and higher global short term interest rates. While the next rate move would likely be a hike, it might not be implemented for the rest of the year. Action Insight | Market Overview | Central Bank Views | China Watch | Special Topics | Oil N' Gold | Live Comments Technical Outlook EUR/USD Mid-Day Outlook Daily Pivots: (S1) 1.2273; (P) 1.2309 (R1) 1.2337; More.... EUR/USD's strong break of 1.2285 support should now confirm completion of the three wave rebound from 1.2154, at 1.2475. Intraday bias is back to the downside for 1.2238 support and then 1.2154. Note that, current development is also seen as another sign of rejection by 1.2516 key fibonacci level. Firm break of 1.2154 will pave the way to 38.2% retracement of 1.0339 to 1.2555 at 1.1708. This will now be the preferred case as long as 1.2344 resistance holds. Suggested Readings US 500 Index Daily Close Below 200-SMA Indicates Bearish Momentum How Long Will Trump Persist With Confrontational Approach? DAX Slides As Chinese Tariffs Unnerve Investors European Stocks Tumble, Dollar Stalls As Trade Worries Persist WTI Crude Oil Futures Hover Above Two-Week Low Of 62.75 Global Stocks Crumble On Risk Aversion, Pound Higher Economic Data
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