15 January 2020 Morning Session Analysis
Swiss Franc surged after U.S. adds it to watchlist.
The Swiss franc skyrocketed on Tuesday following the United States added Switzerland to its watchlist of currency manipulators. According to Reuters, The U.S. Treasury Department wrote in the semi-annual report on Monday that it had added Switzerland to a list of countries where it had concerns about currency manipulating in order to steer the Swiss franc for competitive gain. In fact, the United States encouraged the Swiss authorities to publish all intervention data more frequently. Investors believed that the inclusion could discourage the Swiss National Bank (SNB) from intervening its currency in order to limit further appreciation of the Swiss franc, spurring significant demand for the currency. However, the finance ministry of the Switzerland on Tuesday rejected the U.S. allegations and reiterated that they did not manipulate their currency, citing the negative effects on inflation and its bleak export performance were merely the causes for devaluing its currency. On the other hand, the dollar index slumped over the backdrop of the bleak economic data yesterday. According to U.S. Bureau of Labor Statistics, U.S. Core Consumer Price Index (CPI) came in at 0.1%, missing the economist forecast of 0.2% while dialing down the market optimism towards the economic progression in the United States. However, at this time investors will continue to scrutinize the latest updates with regards of the “phase one” trade deal which would be signed today in order to gauge the likelihood movement for the pair. As of writing, USD/CHF surged 0.01% to 0.9670 while the dollar index appreciated by 0.04% to 97.05.
In the commodities market, the crude oil price appreciated by 0.02% to $58.11 per barrels. The oil market edged higher yesterday, underpinned by optimism over the U.S. China trade deal. Investors anticipated that the resolution of trade war would enhance the global economic growth while insinuating the demand for this black commodity. On the other hand, gold price surged 0.23% to $1549.58 per troy ounces following technical correction from its lower level.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
Tentative GBP Autumn Budget
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 17:30 | GBP – CPI (YoY) (Dec) | 1.5% | 1.5% | – |
| 21:30 | PPI (MoM) (Dec) | 0.0% | 0.2% | – |
| 23:30 | CrudeOIL – Crude Oil Inventories | 1.164M | – | – |
Technical Analysis
DOLLAR_INDX, Daily: Dollar index was traded higher while currently testing the resistance level at 97.10. MACD which illustrated increasing bullish momentum suggest the index to extend its gains after it successfully breakout above the resistance level.
Resistance level: 97.10, 97.60
Support level: 96.65, 96.15
GBPUSD, H4: GBPUSD was traded lower while currently testing the support level at 1.2960. MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 1.3140, 1.3270
Support level: 1.2960, 1.2800
EURUSD, H4: EURUSD was traded higher while currently testing the resistance level at 1.1145. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 1.1145, 1.1170
Support level: 1.1080, 1.0990
USDJPY, H4: USDJPY was traded higher following prior breakout above the previous resistance level at 109.55. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains toward resistance level at 110.55.
Resistance level: 110.55, 111.10
Support level: 109.55, 108.55
AUDUSD, H4: AUDUSD was traded lower following prior retracement from the resistance level at 0.6920. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses toward support level at 0.6865.
Resistance level: 0.6920, 0.6965
Support level: 0.6865, 0.6810
NZDUSD, H4: NZDUSD was traded lower while currently testing the support level at 0.6615. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 0.6675, 0.6735
Support level: 0.6615, 0.6560
USDCAD, H4: USDCAD was traded lower while currently testing the support level at 1.3045. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 1.3110, 1.3180
Support level: 1.3045, 1.2965
USDCHF, H4: USDCHF was traded lower following prior retracement from the resistance level at 0.9740. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses toward support level at 0.9670.
Resistance level: 0.9740, 0.9810
Support level: 0.9670, 0.9585
CrudeOIL, H4: Crude oil price was traded lower while currently testing the support level at 57.95. However, MACD which illustrated diminishing bearish momentum suggest the commodity to be traded higher in short-term as technical correction.
Resistance level: 59.25, 60.75
Support level: 57.95, 56.45
GOLD_, H4: Gold price was traded lower following prior breakout below the previous support level at 1550.30. MACD which illustrated increasing bearish momentum suggest the commodity to extend its losses toward support level at 1528.75.
Resistance level: 1550.30, 1582.00
Support level: 1528.75, 1509.70