Action Insight Daily Report 5-24-18
Action Insight Daily Report 5-24-18 | Yen Stays Strong on Risk Aversion and Trump Pushes for Auto Import Tariffs | Yen strengthens broadly today and remains the strongest one for the week. New wave of risk aversion trades was triggered by news that US President Donald Trump is using national security as excuse again to study imposition of tariffs on import cars. Nikkei closed down -1.11% at 22437.01 as car maker shares led the markets down. Due to risk aversion, Swiss Franc is also trading generally firmer today, following Yen. Sterling turned mixed after yesterday's selloff and it will face another data test in UK retail sales today. The Pound remains the weakest one for the week. Euro also turned mixed as markets await ECB meeting accounts. Based on recent comments from ECB officials, the central bank is still on course to end the asset purchase program this year. The meeting accounts could affirm this view and provide some support to the Euro. | EUR/JPY Daily Outlook Daily Pivots: (S1) 127.71; (P) 129.27; (R1) 130.32; More.... EUR/JPY's decline continues today and reaches as low as 127.96 so far. 61.8% projection of 137.49 to 128.94 from 133.47 at 128.18 is met but there is no sign of bottoming yet. Intraday bias remains on the downside for 126.61 medium term fibonacci level. We'll be aware of strong support from 126.61 to contain downside and bring rebound. On the upside, above 129.05 minor resistance will turn intraday bias neutral first. But near term outlook will stay bearish as long as 131.34 resistance holds. | | GMT | Ccy | Events | Actual | Forecast | Previous | Revised | 22:45 | NZD | Trade Balance Apr | 253M | 198M | -86M | -156M | 6:00 | EUR | German GDP Q/Q Q1 F | 0.30% | 0.30% | 0.30% | | 6:00 | EUR | German GfK Consumer Confidence Jun | 10.7 | 10.8 | 10.8 | | 8:30 | GBP | Retail Sales M/M Apr | | 0.80% | -1.20% | | 11:30 | EUR | ECB Monetary Policy Meeting Accounts | | | | | 12:30 | USD | Initial Jobless Claims (MAY 19) | | 220K | 222K | | 13:00 | USD | House Price Index M/M Mar | | | 0.60% | | 14:00 | USD | Existing Home Sales Apr | | 5.55M | 5.60M | | 14:30 | USD | Natural Gas Storage | | | 106B | | | | |