5 February 2021 Morning Session Analysis
Pound skyrocketed amid hawkish BoE statement.
Pound sterling which act as one of the major currencies in the FX market jumped significantly after Bank of England (BoE) left it monetary policy unchanged while putting off the possibility to further cut interest rate in anytime soon. In the BoE meeting, the board of members unanimously agreed to keep it cash rate at 0.10%, while agreed to set the deadline for commercial banks to prepare themselves as negative lending rates are remains as part of their toolkit. Despite, the possibility of negative rates has grown but it would take a significant event to prompt its use. Besides, BoE also revealed their forecast where expecting UK economy will recover rapidly as the ongoing vaccination programme is assumed to lead to an easing of national lockdown as well as public health concern. However, UK GDP is still expected to shrink in the first quarter of year 2021 as the recovery pace was interrupted by the result of latest national lockdown. Last but not least, BoE also maintain its asset-purchase plan at 895 billion pounds ($1.2 trillion). In overall, hawkish signal from BoE has sparked huge buying pressure in pound market, yet investors will still eyeing on the possibility of implementing negative rate from time to time. As of writing, the pair of GBP/USD surged by 0.02% to 1.3675.
In the commodities market, the crude oil price appreciated by 0.04% to $56.48 per barrel amid ongoing oil production cut plan continue override the market concern over new variant of virus. Besides, gold price plunged by 0.05% to $1793.75a troy ounce amid hawkish statement from Bank of England diminished the investors demand toward safe-haven asset.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
21:30 GBP BoE Gov Bailey Speaks
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 21:30 | USD – Nonfarm Payrolls (Jan) | -140K | 50K | – |
| 21:30 | USD – Unemployment Rate (Jan) | 6.7% | 6.7% | – |
| 21:30 | CAD – Employment Change (Jan) | -62.6K | -47.5K | – |
| 23:00 | CAD – Ivey PMI (Jan) | 46.7 | – | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded higher following prior breakout above the previous resistance level at 91.10. MACD which illustrated bullish bias momentum suggest the index to extend its gains toward the resistance level at 91.60.
Resistance level: 91.60, 92.10
Support level: 91.10, 90.75
GBPUSD, H4: GBPUSD was traded higher following prior breakout above the previous resistance level at 1.3620. MACD which illustrated bullish bias momentum suggest the pair to extend its gains toward the resistance level at 1.3695.
Resistance level: 1.3695, 1.3750
Support level: 1.3620, 1.3535
EURUSD, H4: EURUSD was traded lower following prior breakout below the previous support level at 1.1985. MACD which illustrated bearish bias momentum suggest the pair to extend its losses toward the support level at 1.1935.
Resistance level: 1.1985, 1.2015
Support level: 1.1935, 1.1880
USDJPY, H4: USDJPY was traded higher while currently testing the resistance level at 105.50. MACD which illustrated bullish bias momentum suggest the pair to extend its gains after it successfully closed above the resistance level.
Resistance level: 105.50, 105.75
Support level: 105.10, 104.65
AUDUSD, H4: AUDUSD was traded higher following prior rebound from the lower level. MACD which illustrated bullish bias momentum suggest the pair to extend its gains toward the resistance level at 0.7635.
Resistance level: 0.7635, 0.7670
Support level: 0.7565, 0.7505
NZDUSD, H4: NZDUSD was traded higher while currently testing the resistance level at 0.7165. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 0.7165, 0.7235
Support level: 0.7105, 0.7030
USDCAD, H4: USDCAD was traded lower following prior retracement from the higher level. MACD which illustrate diminishing bullish momentum signal suggest the pair to be traded lower toward the support level at 1.2800.
Resistance level: 1.2865, 1.2930
Support level: 1.2800, 1.2770
USDCHF, H4: USDCHF was traded higher following prior breakout above the previous resistance level at 0.9035. MACD which illustrated bullish bias momentum suggest the pair to extend its gains toward the resistance level at 0.9075.
Resistance level: 0.9075, 0.9140
Support level: 0.9035, 0.8985
CrudeOIL, H4: Crude oil price was traded higher following prior rebound from the support level at 55.40. MACD which illustrated bullish bias momentum suggest the commodity to extend its gains toward the resistance level at 56.65.
Resistance level: 56.65, 57.80
Support level: 55.40, 53.75
GOLD_, H4: Gold price was traded lower following prior breakout below the previous support level at 1803.00. MACD which illustrated bearish bias momentum suggest the commodity to extend its losses toward the support level at 1765.15.
Resistance level: 1803.00, 1825.40
Support level: 1765.15, 1736.15