Dollar Down, Futures Pare Gain after Poor US Retail Sales
Action Insight Mid-Day Report 5-14-21

Dollar Down, Futures Pare Gain after Poor US Retail Sales

Dollar is under selling pressure against after rather poor retail sales data. US futures also pare back some earlier gains and look vulnerable. Yen is currently following the greenback as the second weakest, while commodity currencies are the strongest, together with Euro. The question now is, whether Dollar's decline could gather enough momentum for new lows before weekly close.

Technically, focuses will now be on 1.2181 temporary top in EUR/USD and 0.8984 temporary low in USD/CHF. Additionally, Gold's retreat could have completed after drawing support from 4 hour 55 EMA. Eyes are back on 1845.31 resistance and break will resume larger rebound from 1676.65.

In Europe, at the time of writing, FTSE is up 0.69%. DAX is up 0.64%. CAC is up 0.95%. Germany 10-year yield is down -0.010 at -0.129. Earlier in Asia, Nikkei rose 2.32%. Hong Kong HSI rose 1.11%. China Shanghai SSE rose 1.77%. Singapore Strait Times dropped -2.18%. Japan 10-year JGB yield dropped -0.0108 to 0.085.

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GBP/USD Mid-Day Outlook

Daily Pivots: (S1) 1.4011; (P) 1.4045; (R1) 1.4083; More...

GBP/USD recovers today but stays below 1.4165 resistance. Intraday bias remains neutral first. But further rise is expected with 1.4008 resistance turned support intact. On the upside, break of 1.4165 will resume the rally from 1.3668 to retest 1.4240 high. Firm break there will resume larger up trend from 1.1409 low for 1.4376 long term resistance next. However, firm break of 1.4008 will delay the bullish case and extend the corrective pattern from 1.4240 with another falling leg.

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EURUSD | USDJPY | GBPUSD | USDCHF | AUDUSD | USDCAD

EURJPY | EURGBP | EURCHF | EURAUD | GBPJPY

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Economic Calendar
GMT Ccy Events Actual Forecast Previous Revised
22:30 NZD BusinessNZ Manufacturing Index Apr 58.4 63.6
23:50 JPY Money Supply M2+CD Y/Y Apr 9.20% 9.40% 9.50% 9.40%
11:30 EUR ECB Monetary Policy Meeting Accounts
12:30 CAD Manufacturing Sales M/M Mar 3.50% 3.50% -1.60%
12:30 CAD Wholesale Sales M/M Mar 2.80% 1.00% -0.70%
12:30 USD Retail Sales M/M Apr 0.00% 0.50% 9.70% 9.80%
12:30 USD Retail Sales ex Autos M/M Apr -0.80% 0.90% 8.40% 9.00%
12:30 USD Import Price Index M/M Apr 0.70% 0.60% 1.20%
13:15 USD Industrial Production M/M Apr 0.90% 1.40%
13:15 USD Capacity Utilization Apr 75.20% 74.40%
14:00 USD Michigan Consumer Sentiment Index May P 89.5 88.3
14:00 USD Business Inventories Mar 0.30% 0.50%