24 September 2021 Morning Session Analysis
Pound surged amid hawkish tone from BoE.
Pound Sterling surged following the Bank of England unleashed their hawkish tone yesterday. The Bank of England continue to set their monetary policy to meet the 2% inflation target, and in a way to boost economic growth and employment rate. The Monetary Policy Committee (MPC) voted unanimously to maintain the interest rate at 0.1% while continuing with its existing program of UK government bond purchases. On the inflation front, the BoE warned that the consumer prices were likely to climb to “slightly above” 4% this year, double its target level, which increasing hopes for the BoE to be tightening its monetary policy to combat the high inflation risk in future. Nonetheless, the gains experienced by the Pound Sterling was limited by the bearish economic data. According to Markit Economics, U.K. Manufacturing Purchasing Managers’ Index (PMI) notched down from the previous reading of 60.3 to 56.3, missing the market forecast at 59.0. As of writing, GBP/USD appreciated by 0.12% to 1.3735.
In the commodities market, the crude oil price appreciated by 0.11% to $73.55 pe barrel as of writing. The oil market continues to extend its gains, buoyed by growing fuel demand expectation following the rapid process of the Covid-19 vaccination program around the world. On the other hand, the gold price slumped 0.27% to $1747.65 per troy ounces as of writing amid the earlier hawkish tone from the Federal Reserve, dragging down the appeal for the safe-haven gold.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
22:00 USD Fed Chair Powell Speaks
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 16:00 | EUR – German Ifo Business Climate Index (Sep) | 99.4 | 98.9 | – |
| 22:00 | USD – New Home Sales (Aug) | 708K | 713K | – |
Technical Analysis
DOLLAR_INDX, Daily: Dollar index was traded lower following prior retracement from the resistance level at 93.40. MACD which illustrated diminishing bullish momentum suggest the index to extend its losses toward support level at 92.65.
Resistance level: 93.40, 94.10
Support level: 92.65, 91.80
GBPUSD, H4: GBPUSD was traded higher while currently testing the resistance level at 1.3735. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 1.3735, 1.3805
Support level: 1.3695, 1.3605
EURUSD, H4: EURUSD was traded higher while currently near the resistance level at 1.1760. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 1.1760, 1.1800
Support level: 1.1705, 1.1665
USDJPY, Daily: USDJPY was traded higher while currently testing the resistance level at 110.40. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 110.40, 111.10
Support level: 109.65, 109.20
AUDUSD, H4: AUDUSD was traded higher following prior breakout above the previous resistance level at 0.7280. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains toward resistance level at 0.7345.
Resistance level: 0.7345, 0.7475
Support level: 0.7280, 0.7220
NZDUSD, H4: NZDUSD was traded higher while currently testing the resistance level at 0.7080. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 0.7080, 0.7160
Support level: 0.6990, 0.6940
USDCAD, H1: USDCAD was traded lower while currently near the support level at 1.2625. However, MACD which illustrated increasing bullish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 1.2690, 1.2755
Support level: 1.2625, 1.2580
USDCHF, Daily: USDCHF was traded lower while currently testing the support level at 0.9230. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 0.9305, 0.9375
Support level: 0.9330, 0.9100
CrudeOIL, H4: Crude oil price was traded higher following prior breakout above the previous resistance level at 72.35. MACD which illustrated increasing bullish momentum suggest the commodity to extend its gains toward resistance level at 74.25.
Resistance level: 74.25, 76.05
Support level: 72.35, 70.30
GOLD_, H4: Gold price was traded lower while currently testing the support level at 1746.20 MACD which illustrated increasing bearish momentum suggest the commodity to extend its losses after it successfully breakout below the support level.
Resistance level: 1763.50, 1778.20
Support level: 1746.20, 1737.05