16 June 2020 Morning Session Analysis
Safe-haven US Dollar slumped over the risk-on sentiment.
The safe-haven currency such as US Dollar slumped on yesterday US trading hours following the Federal Reserve announced that the US Central Bank would buy individual corporate bonds in the secondary market, spurring the risk-on sentiment in the FX market while prompting the investors to shift their investment into riskier assets. According to Reuters, the Federal Reserve said that they will start purchasing corporate bonds on Tuesday through the secondary market corporate credit facility (SMCCF) in order to boost up liquidity and solvency of the US companies while combating the economical damage from the coronavirus crisis. Nonetheless, investors at this time would continue to scrutinize the latest development with regards of the coronavirus crisis in order to receive further signal. With the economic data front, the Federal Reserve Bank of New York reported that the U.S. NY Empire State Manufacturing Index notched up from the preliminary reading of -48.50 to -0.20, much exceed the economist forecast at -27.50, which dialled up the market optimism toward the economic progression in the United States while limiting the losses experienced by the US Dollar. As of writing, the dollar index depreciated by 0.72% to 96.55.
In the commodities market, the crude oil price surged 0.34% to $37.50 per barrel. The oil market edged higher following the Iraq agreed with major oil companies to cut crude oil production further in June. However, the gains experienced by the crude oil commodity is limited as investors fears on the second wave of the coronavirus infections, which spurring negative prospect for the crude oil demand. On the other hand, the gold market surged 0.05% to $1725.60 amid to the depreciation of US Dollar.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
12:30 JPY BoJ Monetary Policy Statement
15:00 JPY BoJ Press Conference
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 14:00 | GBP – Average Earnings Index +Bonus (Apr) | 2.4% | 1.4% | – |
| 14:00 | GBP – Claimant Count Change (May) | 856.5K | 370.0K | – |
| 17:00 | EUR – German ZEW Economic Sentiment (Jun) | 51.0 | 60.0 | – |
| 20:30 | USD – Core Retail Sales (MoM) (May) | -17.2% | 5.1% | – |
| 20:30 | USD – Retail Sales (MoM) (May) | -16.4% | 8.0% | – |
Technical Analysis
DOLLAR_INDX, H1: Dollar index was traded lower while currently testing the support level at 96.30. MACD which illustrated increasing bearish momentum suggest the index to extend its losses after it successfully breakout below the support level.
Resistance level: 97.15, 98.15
Support level: 96.30, 95.40
GBPUSD, H4: GBPUSD was traded higher while currently testing the resistance level at 1.2650. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 1.2650, 1.2720
Support level: 1.2525, 1.2440
EURUSD, H1: EURUSD was traded higher following prior rebound from the support level at 1.1245. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 1.1405, 1.1555
Support level: 1.1245, 1.1140
USDJPY, H4: USDJPY was traded higher while currently testing the resistance level at 107.45. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 107.45, 107.80
Support level: 107.15, 106.70
AUDUSD, H1: AUDUSD was traded higher following prior breakout above the previous resistance level at 0.6915. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 0.7015, 0.7185
Support level: 0.6915, 0.6815
NZDUSD, H1: NZDUSD was traded higher while currently testing the resistance level at 0.6505. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 0.6505, 0.6570
Support level: 0.6400, 0.6345
USDCAD, H4: USDCAD was traded lower following prior retracement from the resistance level at 1.3640. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses toward support level at 1.3480.
Resistance level: 1.3640, 1.3800
Support level: 1.3480, 1.3355
USDCHF, H1: USDCHF was traded lower following prior breakout below the previous support level at 0.9505. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 0.9505, 0.9545
Support level: 0.9450, 0.9380
CrudeOIL, H1: Crude oil price was traded higher while currently testing the resistance level at 37.5. However, MACD which illustrated diminishing bullish momentum suggest the commodity to be traded lower in short-term as technical correction.
Resistance level: 37.75, 39.05
Support level: 36.05, 34.65
GOLD_, H4: Gold price was traded higher following prior breakout above the previous resistance level at 1723.00. MACD which illustrated diminishing bearish momentum suggest the commodity to extend its gains toward resistance level at 1738.70.
Resistance level: 1738.70, 1752.05
Support level: 1723.00, 1706.00