Action Insight Daily Report 5-23-18
Action Insight Daily Report 5-23-18 | Yen Surges Broadly Risk Appetite Fades, GBPJPY on Shaky Ground ahead of UK CPI | Yen surges broadly today and is trading as the strongest one, followed by Swiss Franc. On the other hand, Canadian, Australian and New Zealand Dollar are under heavy selling pressure. The boost from optimism in China-US trade talk faded quickly and the markets are back in risk-off mode. DOW closed down -0.72% or 178.88 pts to 24834.41 overnight. S&P 500 lost -0.31% to 2724.44. NASDAQ dropped -0.21% to 7378.46. In Asian Nikkei is trading down -1.15% at the time of writing. HK HSI is down -1.0%. Markets were clearly dissatisfied with Donald Trump's comment with the selloff in the US markets. Trump said he's "not satisfied" with the trade talks with China. And called the negotiations just a "start". That's rather inconsistent with Treasury Secretary Steven Mnuchin's comment that the meeting made "very meaningful progress". The comments also reminded investors of the capricious assertiveness in Trump's administration, as European council president Donald Tusk described. | GBP/JPY Daily Outlook Daily Pivots: (S1) 148.57; (P) 149.15; (R1) 149.54; More... GBP/JPY's sharp fall and break of 148.16 minor support suggests that corrective recovery from 147.04 has completed at 149.99 already, ahead of 150.06 resistance as expected. Intraday bias is back on the downside for 147.04 first and then 144.97. Decisive break of 144.97 will resume the fall from 156.59 and target 100% projection of 156.59 to 144.97 from 153.84 at 142.22 next. In case of another rise, we'd continue to expect strong resistance below 150.60 support turned resistance to bring decline resumption. | | GMT | Ccy | Events | Actual | Forecast | Previous | Revised | 0:30 | JPY | PMI Manufacturing May P | 52.5 | 53.6 | 53.8 | | 0:30 | AUD | Westpac Leading Index M/M Apr | 0.20% | | -0.20% | | 1:30 | AUD | Construction Work Done Q1 | 0.20% | 1.30% | -19.40% | -18.30% | 4:30 | JPY | All Industry Activity Index M/M Mar | 0.00% | 0.10% | 0.40% | | 7:00 | EUR | France Manufacturing PMI May P | | 53.7 | 53.8 | | 7:00 | EUR | France Services PMI May P | | 57.2 | 57.4 | | 7:30 | EUR | Germany Manufacturing PMI May P | | 57.9 | 58.1 | | 7:30 | EUR | Germany Services PMI May P | | 53.1 | 53 | | 8:00 | EUR | Eurozone Manufacturing PMI May P | | 56 | 56.2 | | 8:00 | EUR | Eurozone Services PMI May P | | 54.7 | 54.7 | | 8:30 | GBP | CPI M/M Apr | | 0.50% | 0.10% | | 8:30 | GBP | CPI Y/Y Apr | | 2.50% | 2.50% | | 8:30 | GBP | Core CPI Y/Y Apr | | 2.20% | 2.30% | | 8:30 | GBP | RPI M/M Apr | | 0.50% | 0.10% | | 8:30 | GBP | RPI Y/Y Apr | | 3.40% | 3.30% | | 8:30 | GBP | PPI Input M/M Apr | | 1.00% | -0.10% | | 8:30 | GBP | PPI Input Y/Y Apr | | 5.80% | 4.20% | | 8:30 | GBP | PPI Output M/M Apr | | 0.30% | 0.20% | | 8:30 | GBP | PPI Output Y/Y Apr | | 2.30% | 2.40% | | 8:30 | GBP | PPI Output Core M/M Apr | | 0.30% | 0.10% | | 8:30 | GBP | PPI Output Core Y/Y Apr | | 2.10% | 2.20% | | 8:30 | GBP | House Price Index Y/Y Mar | | 4.40% | 4.40% | | 10:00 | GBP | CBI Reported Sales May | | | -2 | | 13:45 | USD | Manufacturing PMI May P | | 56.5 | 56.5 | | 13:45 | USD | Services PMI May P | | 54.8 | 54.6 | | 14:00 | USD | New Home Sales Apr | | 678K | 694K | | 14:00 | EUR | Eurozone Consumer Confidence May A | | 0.5 | 0.4 | | 14:30 | USD | Crude Oil Inventories | | | -1.4M | | 18:00 | USD | FOMC Meeting Minutes | | | | | | | |