Action Insight

China’s macroeconomic data was mixed in April. Industrial production (IP) expanded +7% y/y, accelerating form +6% in March and consensus of +6.4%. Retail sales grew +9.4% y/y, easing from +10.1% in March. The market had anticipated a milder drop to +10%. Urban fixed-asset investment (FAI) increased +7% in the...

Dollar surges broadly today as boosted by strong rally in treasury yield. 10 year yield reaches as high as 3.049 so far today and breaks key resistance level of 3.036 (2013 high). TNX reaches the highest level since 2011. Released from US, retail sales rose 0.3% mom in April,...

Failure to rescue currency slump despite aggressive rate hike has led Argentina to seek IMF bailout. Last week, it was reported by the government has asked for a flexible credit line worth $30B from the world lender. According to President Mauricio Macri, “this is going to allow us to...

Dollar's corrective pull back yesterday was rather brief and shallow. EUR/USD reached 1.1995 but failed to break through 1.2 handle. It's now back at 1.1930. USD/CHF breached parity briefly to 0.9956 and is back above 1.0000 now. GBP.USD continued to stay in tight range above 1.3459 and failed even...

Euro rises broadly today as lifted by hawkish comments from an ECB official. Sterling closely follow as the second strongest one. On the other hand, New Zealand dollar continues to suffer broad based selling pressure today, in particular against Australian Dollar. Yen follows as the second weakest on optimism...

Yen trades broadly lower today, expect versus New Zealand Dollar. Solid risk appetite is a factor pressuring the Yen. Nikkei closed up 0.47% at 28865.86, hitting the highest level in more than three months. Strong performance of cosmetics maker Shiseido is a factor driving the Japanese markets up. But...

We initiate coverage on speculators' activities on major FX futures. According to CFTC's Commitments of Traders, speculators were bearish (NET SHORT) on CHF, JPY, AUD and CAD in the week ended May 8. Meanwhile, they remained bullish (NET LENGTH) over EUR, GBP and NZD. However, the positive sentiment has...

Speculators were mixed over the energy complex in the week ended May 8. Net LENGTH for crude oil futures plunged -10 799 contracts from a week ago to 679 928. NET LENGTH of heating oil rose +5 463 contracts to 32 460 while net LENGTH for gasoline added +1 726 contracts...

Canadian Dollar surged broadly last week following the rally in oil prices. Weaker than expected employment capped the Loonie's gain, but it ended as the strongest still. Sterling survived BoE super Thursday and ended up against all but Canadian. That's a clear indication that markets didn't see BoE announcements...

Canadian dollar drops broadly as employment data missed market section. While it's trading as the weakest one for today, the movement in USD/CAD is rather muted. That's because focus is turning to the greenback again as selling gathers momentum. Weakening treasury yield could be a factor driving the greenback...

The post CPI selloff in Dollar was relatively shallow and the greenback is regaining some footing today. Similar Sterling stays week after post BoE selling, but loss is so far limited. On the other hand, Canadian Dollar remains the strongest one for the week and stays firm ahead of...

BOE voted 7-2 to keep the Bank rate unchanged at 0.5% in May. The members voted unanimously to leave to asset purchase program unchanged at 435B pound. As we had mentioned in the preview (https://www.actionforex.com/action-insight/central-bank-analysis/92835-boe-could-be-more-dovish-than-hawkish-hold/), BOE’s message turned out more dovish than the market had anticipated. The staff revised...

Sterling weakens notably after BoE rate announcement. But loss is relatively limited as it's holding above key near term support level against Dollar, Euro and Yen. On the other hand, Dollar is also suffering some selloff today as core CPI missed market expectation. That's a relive for traders that...

The report from the US Energy Information Administration (EIA) shows that total crude oil and petroleum products stocks fell -1.55 mmb to 1186.18 mmb in the week ended May April 4. Crude oil inventory fell -2.2 mmb (consensus: -0.72 mmb) to 433.76 mmb, amidst falls in 3 out of...

Dollar, Sterling and Canadian Dollar remain the strongest three for the week. But is should be noted that the reasons behind the strength are different. The greenback continued to draw support from strength in treasury yields as 10 year yield broke 3% yesterday to 3.004. Fed is also on...

RBNZ left the OCR unchanged at 1.75% in May. The message delivered by the central bank came in slightly more dovish than expected, sending NZDUSD to a fresh 5-month low. In his first meeting in the capacity of the RBNZ Governor, Adrian Orr made some changes in the policy...

Yen remains the weakest one in early US session while strength in oil price is giving Canadian Dollar a strong boost. Dollar, on the other hand, reversed earlier gains and trades broadly lower, except versus Yen. Bullish momentum of the greenback seems to be exhausted ahead of heavy weight...

Donald Trump confirmed that the US would withdraw from the Iran nuclear deal, an agreement reached in 2015 between Iran, the P5+1 (5 UNSC permanent members including US, France, Russia, UK, China + Germany) and the European Union. New sanctions, both financial sanctions and bans of oil exports, would...

Reactions to US withdrawal from the Iran nuclear deal were centered in oil and yield. Stocks had a rather quiet day yesterday with DOW ended up 0.01%, S&P 500 down -0.03% and NASDAQ up 0.02%. At the time of writing, Nikkei is down -0.35%. Meanwhile, after a volatile ride,...

The strong rally in both Swiss Franc and Japanese Yen, together with selloff in commodity currencies, argue that forex traders are preparing themselves for some risk aversion. US President Donald Trump's decision on Iran deal today should be the key perceived risk. At the time of writing, European indices...