Action Insight Weekly Report 4-21-18
| Action Insight Weekly Report 4-21-18 | | Yen and Franc Ended as the Weakest Ones as Risk Aversion Temporarily Eased, Reaction to Syria Strikes Watched | Dollar ended broadly higher last week as boosted by surge in treasury yields. 10 year yield finally completed its consolidation that started back in February, and rose through 2.943 high to close strongly at 2.951. That came with the background that recent comments from Fed officials affirmed its gradual tightening path. In addition, Fed will continue to unwind its treasury holdings this year, and the US government will need to issue more debts to fund its spending. Another key development to note is that spread between 2 year note and 10 year note widened back to about 0.5% and eased some concerns over flattening or even inverted yield curve. US equities, on the other hand, reversed almost all of its earlier gains and closed just marginally higher. |  | GBP/USD Weekly Outlook GBP/USD edged higher to 1.4376 last week but reversed and dropped sharply to close at 1.3995. Initial bias remains on the downside this week for 1.3965 support first. Break there will pave the way to 1.3711 key support level. On the upside, above 1.4069 minor resistance will turn intraday bias neutral and bring consolidations. But for now, near term risk will stay on the downside as long as 4 hour 55 EMA (now at 1.4173 holds). |  | | | |
