Action Insight Daily Report 5-18-18
Action Insight Daily Report 5-18-18 | Canadian Dollar Lower on NAFTA Deadlock, Awaits CPI and Retail Sales | Dollar remains the strongest one for the week as supported by treasury yields. 10 year yield extended recent rally to close at 3.109 overnight, and it hits as high as 3.127 in Asian session. 30 year yield also jumped to near 30 year high at 3.246, breaking a key near term resistance at 3.221. Nonetheless, the current round of Dollar buying was mainly centered against Euro and Yen. The greenback remains bounded in established range against other major currencies. As for today, Canadian Dollar is trading as the weakest one. The May 17 deadline of NAFTA negotiation passed without any progress, and could be no where close to a deal. Canadian Dollar traders also turned a bit cautious ahead of inflation and retail sales data to be featured today. Technically, focus will remain on 1.3450/3607 range edges in GBP/USD, 0.9956/1.0056 range edges in USD/CHF. | USD/CAD Daily Outlook Daily Pivots: (S1) 1.2760; (P) 1.2794; (R1) 1.2843; More.... Intraday bias in USD/CAD remains neutral for the moment. For now, we're still favoring the bullish case that rise from 1.2061 is still in progress. Above 1.2996 resistance will affirm this view and target 1.3124 and above. However, break of 1.2728 will now dampen our bullish view and turn focus back to 1.2526 support instead. | | GMT | Ccy | Events | Actual | Forecast | Previous | Revised | 23:30 | JPY | National CPI Core Y/Y Apr | 0.70% | 0.80% | 0.90% | | 06:00 | EUR | German WPI M/M Apr | | 0.20% | 0.00% | | 06:00 | EUR | German PPI Y/Y Apr | | 1.80% | 1.90% | | 06:00 | EUR | German PPI M/M Apr | | 0.30% | 0.10% | | 08:00 | EUR | Eurozone Current Account (EUR) Mar | | 35.1B | 35.1B | | 09:00 | EUR | Eurozone Trade Balance (EUR) Mar | | 21.1B | 21.0B | | 12:30 | CAD | Retail Sales M/M Mar | | 0.40% | 0.40% | | 12:30 | CAD | Retail Sales Ex Auto M/M Mar | | 0.50% | 0.00% | | 12:30 | CAD | CPI M/M Apr | | 0.30% | 0.30% | | 12:30 | CAD | CPI Y/Y Apr | | 2.30% | 2.30% | | 12:30 | CAD | CPI Core - Common Y/Y Apr | | 1.90% | 1.90% | | 12:30 | CAD | CPI Core - Median Y/Y Apr | | 2.10% | 2.10% | | 12:30 | CAD | CPI Core - Trim Y/Y Apr | | 2.10% | 2.00% | | | | |