Action Insight Daily Report 5-20-22

Sterling Shrugs Strong Retail Sales, Dollar Holding Above Near Term Support

Dollar and Yen traded with an undertone in Asian session today but Aussie is also mildly weaker. On the other hand, Swiss Franc is the stronger one, followed by Kiwi and Canadian. Sterling is treading water despite strong UK retail sales data. Swiss Franc is staying at the winner for the week, on talks that SNB is turning more open for rate hike. Sterling is a distant second. Dollar is the worst performing one, followed by Canadian and Yen.

Technically, a big question is on whether Dollar's selloff could gather momentum before weekend to secure more selloff next week. Focuses will be on 1.0641 resistance in EUR/USD, 1.2627 resistance in GBP/USD, and 1.2712 support in USD/CAD. Also, if Gold could break through 1858.57 minor resistance, that could be a hint on Dollar weakness too.

In Asia, Nikkei closed up 1.28%. Hong Kong HSI is up 2.20%. China Shanghai SSE is up 1.26%. Singapore Strait Times is up 1.37%. Japan 10-year JGB yield is down -0.0026 at 0.240. Overnight, DOW dropped -0.75%. S&P 500 dropped -0.58%. NASDAQ dropped -0.26%. 10-year yield dropped -0.031 to 2.855.

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GBP/USD Daily Outlook

Daily Pivots: (S1) 1.2364; (P) 1.2445; (R1) 1.2551; More..

Intraday bias in GBP/USD remains neutral and outlook is unchanged. . Further decline will remain in favor as long as 1.2637 resistance holds. On the downside, break of 1.2154 will resume the down trend from 1.4248. However, considering bullish convergence condition in 4 hour MACD, break of 1.2637 will confirm short term bottoming at 1.2154. Intraday bias will be turned back to the upside for 55 day EMA (now at 1.2789).

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EURJPY | EURGBP | EURCHF | EURAUD | GBPJPY

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Economic Calendar

GMT	Ccy	Events	Actual	Forecast	Previous	Revised
22:45	NZD	Trade Balance (NZD) Apr	584M	-350M	-392M
23:01	GBP	GfK Consumer Confidence May	-40	-39	-38
23:30	JPY	National CPI Core Y/Y Apr	2.10%	2.00%	0.80%
06:00	GBP	Retail Sales M/M Apr	1.40%	-0.20%	-1.40%	-1.20%
06:00	GBP	Retail Sales Y/Y Apr	-4.90%	-7.20%	0.90%	1.30%
06:00	GBP	Retail Sales ex-Fuel M/M Apr	1.40%	-0.20%	-1.10%	-0.90%
06:00	GBP	Retail Sales ex-Fuel Y/Y Apr	-6.10%	-8.40%	-0.60%	-0.20%
06:00	EUR	Germany PPI M/M Apr	2.80%	1.40%	4.90%
06:00	EUR	Germany PPI Y/Y Apr	33.50%	31.40%	30.90%
14:00	EUR	Eurozone Consumer Confidence May P	-21	-22