03 January 2020 Morning Session Analysis
Pound fall amid fears of the no-deal Brexit.
Pound Sterling recorded its biggest daily dropped in more than two weeks on yesterday amid fear over the risk of a no-deal Brexit at the end of 2020. Earlier, UK Prime Minister Boris Johnson set a hard deadline of December 2020 to reach a new trade deal with the EU, spurring fears of hard-Brexit as investors believed that it would be insufficient time to make an efficient trade deal between both countries. In addition, according to a Bank of England survey that straddled the election, it showed that 42% of respondents did not expect the Brexit uncertainty to be resolved completely until the year of 2021, a significant increase from the previous reading of 34% in November. However, investors would continue to scrutinize the latest official updates with regards of UK and European Union trade negotiations in order to gauge the likelihood movement for the pair. Besides that, Pound Sterling received a further bearish momentum following a bleak data from the UK manufacturing sector was released. According to Markit, U.K. Manufacturing Purchasing Managers Index (PMI) notched down from the previous reading of 48.9 to 47.5, missing the economist forecast at 47.6. As of writing, GBP/USD appreciated by 0.02% to 1.3143.
In the commodities market, crude oil price slumped on yesterday as investors start to worry about the future outlook for the demand for crude oil in the new year. On the other hand, the gold price surged on yesterday as the US-Middle East tension escalated, which weighed on the risk appetite in the FX market while insinuating the demand for the safe-haven metal. As of writing, crude oil price was traded flat at $61.12 per barrel while the gold price slumped 0.04% to $1527.95 per troy ounces.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
03:00 USD FOMC Meeting Minutes
(4rd)
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 16:55 | EUR – German Unemployment Change (Dec) | -16K | 5K | – |
| 17:30 | GBP – Construction PMI (Dec) | 45.3 | 45.9 | – |
| 23:00 | USD – ISM Manufacturing PMI (Dec) | 48.1 | 49.0 | – |
| 00:00
(4th) |
CrudeOIL – EIA Crude Oil Inventories | -5.474M | -3.288M | – |
| 02:00
(4th) |
CrudeOIL – U.S. Baker Hughes Oil Rig Count | 677 | – | – |
Technical Analysis
DOLLAR_INDX, Daily: Dollar index was traded higher while currently testing the resistance level at 96.50. MACD which illustrated diminishing bearish momentum suggest the index to extend its gains after it successfully breakout above the resistance level.
Resistance level: 96.50, 96.95
Support level: 95.95, 95.40
GBPUSD, H4: GBPUSD was traded lower while currently testing the support level at 1.3125. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 1.3210, 1.3275
Support level: 1.3125, 1.3005
EURUSD, H4: EURUSD was traded lower while currently testing the support level at 1.1165. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 1.1215, 1.1270
Support level: 1.1165, 1.1125
USDJPY, Daily: USDJPY was traded lower while currently testing the support level at 108.45. MACD which illustrated increasing bullish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 109.50, 110.45
Support level: 108.45, 107.15
AUDUSD, H4: AUDUSD was traded lower following prior retracement from the resistance level at 0.7020. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses toward support level at 0.6965.
Resistance level: 0.7020, 0.7055
Support level: 0.6965, 0.6925
NZDUSD, H4: NZDUSD was traded lower following prior retracement from the resistance level at 0.6755. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 0.6755, 0.6825
Support level: 0.6665, 0.6600
USDCAD, Daily: USDCAD was traded lower while currently testing the support level at 1.2970. However, MACD which illustrated diminishing bearish momentum suggest the pair to be trade higher in short-term as technical correction.
Resistance level: 1.3045, 1.3110
Support level: 1.2970, 1.2900
USDCHF, Daily: USDCHF was traded higher following prior rebound from the support level at 0.9670. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains toward resistance level at 0.9750
Resistance level: 0.9750, 0.9805
Support level: 0.9670, 0.9585
CrudeOIL, Daily: Crude oil price was traded lower following prior retracement from the resistance level at 61.95. MACD which illustrated increasing bearish momentum suggest the commodity to extend its losses toward support level at 60.25.
Resistance level: 61.95, 63.10
Support level: 60.25, 58.45
GOLD_, Daily: Gold price was traded higher while currently testing the resistance level at 1532.40. However, MACD which illustrated diminishing bullish momentum suggest the commodity to be traded lower in short-term as technical correction.
Resistance level: 1532.40, 1556.85
Support level: 1509.50, 1488.25