8 May 2020 Morning Session Analysis
Pound dipped amid uncertainty of the coronavirus.
Pound Sterling slumped on yesterday amid the uncertainty over how Britain will ease its coronavirus lockdown and Brexit-related risks had outweighed the hawkish statement from the Bank of England. According to Reuters, the Bank of England maintained its interest rates at its all-time low of 0.1% while claiming that they were ready to take further action to combat the coronavirus pandemic’s fallout. On the coronavirus pandemic front, the UK government is expected to announce possible changes to social restrictions on Sunday. However, a spokesman claimed that the UK Prime Minister Boris Johnson would only announce a limited easing restriction measure, which dialled down market optimism toward the economic progression in the UK while sapping the demand for the Pound Sterling. As for now, many economists predicted that the UK would suffer the biggest economic recession in over 300 years in 2020, with a 14% contraction in GDP growth. Nonetheless, at this time investors would continue to scrutinize the latest development with regards of coronavirus pandemic as well as crucial economic data from the UK region in order to gauge the likelihood movement for the pair. As of writing, GBP/USD surged 0.06% to 1.2367.
In the commodities market, the crude oil price surged 1.10% to $23.85 per barrel as of writing. The oil market edged higher following the data on Thursday showing that the China crude imports had surged to 10.42 million barrels a day in April from 9.68 million barrels in March. Besides, as the world starts to ease coronavirus restriction, it could be spurring further positive prospect for the market demand on this black commodity. On the other hand, the gold market appreciated by 0.05% to $1716.95 per troy ounces amid weakening US Dollar.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
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Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 20:30 | USD – Nonfarm Payrolls (Apr) | -701K | -22,000K | – |
| 20:30 | USD – Unemployment Rate (Apr) | 4.4% | 16.0% | – |
| 20:30 | CAD – Employment Change (Apr) | -1,010.7K | -4,000.0K | – |
| 01:00
(9th) |
CrudeOIL – U.S. Baker Hughes Oil Rig Count | 325 | – | – |
Technical Analysis
DOLLAR_INDX, Daily: Dollar index was traded lower while currently testing the support level at 99.75. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 100.65, 101.60
Support level: 99.75, 98.70
GBPUSD, H4: GBPUSD was traded higher while currently testing the resistance level at 1.2375. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 1.2375, 1.2425
Support level: 1.2315, 1.2245
EURUSD, H4: EURUSD was traded higher while currently testing the resistance level at 1.0840. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 1.0840, 1.0875
Support level: 1.0780, 1.0735
USDJPY, H4: USDJPY was traded lower while currently testing the support level at 106.15. However, MACD which illustrated increasing bullish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 107.10, 107.95
Support level: 106.15, 105.35
AUDUSD, Daily: AUDUSD was traded higher following prior rebound from the support level at 0.6405. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains toward resistance level at 0.6540.
Resistance level: 0.6540, 0.6680
Support level: 0.6405, 0.6235
NZDUSD, H4: NZDUSD was traded higher following prior breakout above the previous resistance level at 0.6070. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains toward resistance level at 0.6130.
Resistance level: 0.6130, 0.6205
Support level: 0.6070, 0.6000
USDCAD, H4: USDCAD was traded lower following prior breakout below the previous support level at 1.4015. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses toward support level at 1.3875.
Resistance level: 1.4015, 1.4155
Support level: 1.3875, 1.3765
USDCHF, H4: USDCHF was traded lower following prior retracement from the resistance level at 0.9780. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses toward support level at 0.9585.
Resistance level: 0.9780, 0.9880
Support level: 0.9585, 0.9495
CrudeOIL, H4: Crude oil price was traded lower following prior retracement from the resistance level at 25.90. MACD which illustrated increasing bearish momentum suggest the commodity to extend its losses toward support level at 20.40.
Resistance level: 25.90, 29.95
Support level: 20.40, 15.10
GOLD_, H4: Gold price was traded higher while currently testing the resistance level at 1714.30. MACD which illustrated increasing bullish momentum suggest the commodity to extend its gains after it successfully breakout above the resistance level.
Resistance level: 1714.30, 1733.25
Support level: 1689.95, 1673.75