30 June 2020 Morning Session Analysis
Pound fell over the high debt load.
Pound Sterling extent its losses on Monday amid worries about the UK’s post Brexit spending plans would trigger the country’s bulging debt load. According to Reuters, UK Prime Minister Boris Johnson is expected to unveil a plan to boost up spending the infrastructure projects on Tuesday. However, as for now the UK public debt has exceeded the GDP for the first time since 1963 following the UK government borrowed a record of £55bn in May in order to combat the economic damage due to the coronavirus pandemic. Hence, the plan stoked fears upon the ability of the country to repay its huge load of debt. Besides, the lack of progress over the Brexit’s talks has left scant hope of soft-Brexit, which continually weighing the Pound Sterling. The UK government spokesperson claimed that the UK President Boris Johnson would be ready to leave the transition period on Australia terms if an agreement with European Union could not be reach. Moreover, the UK government reiterated that they want to take control over access to its waters and fish when the Brexit transition period ends, rather than stick with the EU’s Common Fisheries Policy while the EU claimed that they would not agree to any measures that threaten the freedom of the single market. As of writing, GBP/USD slumped 0.17% to 1.2285.
In the commodities market, the crude oil price surged 0.42% to $39.70 per barrel as of writing. The oil market edged higher amid improvement of the global economy data, which spurring the positive outlook for this black commodity. On the other hand, the gold price slumped 0.04% to $1773.00 per troy ounces following the positive economic data from the U.S region was released.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
N/A
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 14:00 | GBP – GDP (QoQ) (Q) | -2.0% | -2.0% | – |
| 17:00 | EUR – CPI (YoY) (Jun) | 0.1% | 0.1% | – |
| 20:30 | CAD – GDP (MoM) (Apr) | -7.2% | -12.0% | – |
| 22:00 | USD – CB Consumer Confidence (Jun) | 86.6 | 91.6 | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower following prior retracement from the resistance level at 97.60. MACD which illustrated diminishing bullish momentum suggest the index to extend its losses toward support level at 97.20.
Resistance level: 97.60, 98.00
Support level: 97.20, 96.80
GBPUSD, H1: GBPUSD was traded higher while currently near the resistance level at 1.2330. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 1.2330, 1.2405
Support level: 1.2255, 1.2185
EURUSD, H4: EURUSD was traded lower following prior retracement from the resistance level at 1.1270. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses toward support level at 1.1210.
Resistance level: 1.1270, 1.1340
Support level: 1.1210, 1.1170
USDJPY, H4: USDJPY was traded lower following prior retracement from the resistance level at 107.90. However, MACD which illustrated increasing bullish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 107.90, 108.45
Support level: 107.35, 106.80
AUDUSD, H4: AUDUSD was traded within a range while currently testing the support level at 0.6845. MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term.
Resistance level: 0.6965, 0.7120
Support level: 0.6845, 0.6690
NZDUSD, H4: NZDUSD was traded lower while currently testing the support level at 0.6395. However, MACD which illustrated increasing bullish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 0.6505, 0.6575
Support level: 0.6395, 0.6320
USDCAD, H4: USDCAD was traded lower following prior retracement from the resistance level at 1.3690. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses toward support level at 1.3520.
Resistance level: 1.3690, 1.3805
Support level: 1.3520, 1.3360
USDCHF, H4: USDCHF was traded higher following prior rebound from the support level at 0.9470. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains toward resistance level at 0.9530.
Resistance level: 0.9530, 0.9580
Support level: 0.9470, 0.9435
CrudeOIL, H4: Crude oil price was traded lower while currently testing the support level at 39.15. However, MACD which illustrated increasing bullish momentum suggest the commodity to be traded higher in short-term as technical correction.
Resistance level: 40.35, 41.40
Support level: 39.15, 37.35
GOLD_, H4: Gold price was traded within a range while currently testing the resistance level at 1779.50. MACD which illustrated diminishing bearish momentum suggest the commodity to be traded higher after it successfully breakout above the resistance level.
Resistance level: 1779.50, 1812.75
Support level: 1727.50, 1680.35