05 November 2020 Afternoon Session Analysis
Pound slumped over the risk-off sentiment.
Pound Sterling extend its losses ahead of the outcome for the U.S. presidential election, which spurring risk-off sentiment in the FX market. As for now, the Democrat Joe Biden was back as favourite to win the U.S. Presidential election in online betting market. Though, the tight race and uncertainty over the outcome remained in the market, which sapping the appeal of the riskier currency such as Pound Sterling. Besides that, the Pound Sterling received further bearish momentum over the backdrop of the dovish sentiment toward the economic progression in United Kingdom. According to UK’s Telegraph, Bank of England is said to be mulling a controversial move into negative interest rates. Besides, the Sun also reported that the Bank of England chiefs are expected to inject around £150 billion of money supply into the economy following the UK Prime Minister announced a second lockdown today. Nonetheless, investors would continue to scrutinize the latest updates with regards of the Bank of England’s interest rate decision in order to receive further trading signal for Pound. As of writing, GBP/USD depreciated by 0.16% to 1.2962.
In the commodities market, the crude oil price depreciated by 1.42% to $38.52 per barrel as of writing. The oil market edged lower following Iraq claimed that they had exported an average of 2.876 million bpd last month, increase by more than 200,000 bpd from September, according to the data from the oil ministry Iraq. The increased of the exports can be considered as a bad sign for the oversupplied oil industries, which spurring bearish momentum for this black-commodity. On the other hand, the gold market appreciated by 0.26% to $1907.75 per troy ounces as of writing amid the uncertainty over the U.S. election had diminished the risk appetite in the market, which insinuating demand for the safe-haven commodity.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
19.00 GBP BoE MPC Meeting Minutes
20.30 GBP BoE Gov Bailey Speaks
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 15.00 | GBP – BoE Interest Rate Decision (Nov) | 0.10% | 0.10% | – |
| 17.30 | GBP – Construction PMI (Oct) | 56.8 | 55.0 | – |
| 21.00 | USD – Initial Jobless Claims | 751K | 732K | – |
Technical Analysis
DOLLAR_INDX, H1: Dollar index was traded lower while currently testing the support level at 93.30. However, MACD which illustrate diminishing bearish momentum signal suggest the dollar to undergo technical rebound toward higher level.
Resistance level: 93.55, 93.90
Support level: 93.30, 93.00
GBPUSD, H1: GBPUSD was traded higher following prior rebound from the support level at 1.2935. MACD which illustrate diminishing bearish momentum suggest the pair to extend its gains toward the resistance level at 1.2980.
Resistance level: 1.2980, 1.3010
Support level: 1.2935, 1.2875
EURUSD, H4: EURUSD was traded higher while currently testing near the resistance level 1.1735. However, MACD which illustrate diminishing bullish momentum signal suggest the pair to undergo technical correction toward lower level.
Resistance level: 1.1735, 1.1765
Support level: 1.1700, 1.1655
USDJPY, H4: USDJPY was traded lower following prior breakout below the previous support level at 104.50. MACD which illustrate bearish momentum signal suggest the pair to be traded lower toward the support level at 104.10.
Resistance level: 104.50, 105.00
Support level: 104.05, 103.65
AUDUSD, H4: AUDUSD was traded lower following prior retracement from the higher level. MACD which illustrate diminishing bullish signal suggest the pair to extend its losses toward the support level at 0.7140.
Resistance level: 0.7205, 0.7265
Support level: 0.7140, 0.7075
NZDUSD, H4: NZDUSD was traded higher following prior breakout above the previous resistance level 0.6660. MACD which illustrate ongoing bullish momentum signal suggest the pair to extend its gains towards the resistance level 0.6725.
Resistance level: 0.6725, 0.6785
Support level: 0.6660, 0.6610
USDCAD, H4: USDCAD was traded higher while currently testing the resistance level at 1.3170. MACD which illustrate diminishing bearish momentum signal suggest the pair to extend its gains after it successfully breakout above the resistance level at 1.3170.
Resistance level: 1.3170, 1.3215
Support level: 1.3095, 1.3025
USDCHF, H4: USDCHF was traded lower while currently testing near the support level 0.9115. MACD which illustrate bearish bias signal suggest the pair to extend its losses after it breaks below the support level.
Resistance level: 0.9150, 0.9180
Support level: 0.9115, 0.9090
CrudeOIL, H1: Crude oil price was traded lower while currently testing the support level at 38.45. MACD which illustrate bearish bias momentum signal suggest the commodity to extend its losses after it successfully breakout below the support level at 38.45.
Resistance level: 39.05, 39.80
Support level: 38.45, 37.55
GOLD_, H1: Gold price was traded higher while currently testing the resistance level at 1908.75. MACD which illustrate bullish bias momentum suggest the commodity to extend its gains after it successfully breakout above the resistance level.
Resistance level: 1908.75, 1913.30
Support level: 1900.90, 1890.85