Action Insight Weekly Report 12-15-18
Fed's Economic Projections to Provide Guidance as Concerns on Global Slowdown Intensify | Action Insight Weekly Report 12-15-18 | | Fed's Economic Projections to Provide Guidance as Concerns on Global Slowdown Intensify |  Sterling and Brexit was the center of focus during the early part of last week. The parliament vote on Brexit was postponed to at least January. UK Prime Minister Theresa May survived leadership challenge but her position is shaky with more than one-third of her MPS voted against her. The visit to EU was seen as a complete failure by some as May only got some vague clarifications and assurance from EU. It's still unknown how May could get the Brexit agreement through the Commons. Sterling ended as the weakest one last week after all. On the other hand, Dollar ended as the strongest one, with the help from worries over global slowdown. In particular, China and Eurozone released some very poor data. But the US is not without it's own problem. The sharp selloff in US stocks on Friday argues there are worries that global slowdown would eventually spread to the US. Yield curve has ended the week inversion between 2- and 5-years. Focus will turn to Fed's rate hike this week, and more importantly, new economic projections. | AUD/USD Weekly Outlook AUD/USD dropped to as low as 0.7151 last week. The development confirmed completion of corrective rebound from 0.7020 at 0.7393. Initial bias stays on the downside this week for retesting 0.7020 low first. On the upside, though, break of 0.7246 resistance will delay the bearish case and turn bias back to the upside. Rebound from 0.7020 could probably head to 38.2% retracement of 0.8135 to 0.7020 at 0.7446 before completion. |  | | | |
