23 January 2020 Morning Session Analysis
Pound surged amid optimism data
Pound Sterling surged since yesterday over the backdrop of positive data from the region of United Kingdom. According to Confederation of British Industry, the U.K. CBI Industrial Trends Orders notched up from the previous reading of -28 to -22, exceeding the economist forecast at -25. The data was fared better than expectation, spurring some market optimisms toward the economic progression in the United Kingdom while diminishing the expectation for the Bank of England to cut rate during the end of the month. According to Reuters, the money-market pricing suggests investors see around 50% chance of the rate cut within this month, down from 70% on Monday. However, at this time investors would continue to scrutinize the latest updates with regards of the Brexit progression as well as the economic data in order to gauge the likelihood movement for the currency. On the other hand, the Japanese Yen was traded higher amid fears of China’s new respiratory virus outbreak which further diminish the risk appetite in the FX market. According to the latest news, death from China’s new flu-like virus rose to 17, with more than 540 cases confirmed. In fact, investors predicted that the virus would harm the global economic growth, spurring some risk-off sentiment toward the FX market while insinuating the demand for the safe-haven currency such as Japanese Yen.
In the commodity market, the crude oil price slumped 0.12% to $56.06 per barrels as of writing. The oil market edged lower following the released of the API crude oil inventory data. According to American Petroleum Institute (API), U.S. API Weekly Crude Oil Stock had increased from the previous reading of 1.100M to 1.600M, which implies weaker demand for the crude oil. On the other hand, as of writing the gold price surged 0.23% to $1562.05 per troy ounces amid to the fears of outbreak of the coronavirus and the weaker greenback.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
20:45 EUR ECB Monetary Policy Statement
21:30 EUR ECB Press Conference
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 20:45 | EUR – Deposit Facility Rate (Jan) | -0.50% | -0.50% | – |
| 20:45 | EUR – ECB Marginal Lending Facility) | 0.25% | – | – |
| 20:45 | EUR – ECB Interest Rate Decision (Jan) | 0.00% | 0.00% | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower following prior retracement from the resistance level at 97.35. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 97.35, 97.60
Support level: 96.85, 96.45
GBPUSD, H4: GBPUSD was traded higher while currently near the resistance level at 1.3160. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 1.3160, 1.3215
Support level: 1.3115, 1.3065
EURUSD, Daily: EURUSD was traded lower while currently testing the support level at 1.1080. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 1.1135, 1.1200
Support level: 1.1080, 1.1005
USDJPY, H4: USDJPY was traded lower while currently testing the support level at 109.55. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 110.25, 111.10
Support level: 109.55, 108.65
AUDUSD, H1: AUDUSD was traded lower following prior retracement from the resistance level at 0.6875. However, MACD which illustrated increasing bullish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 0.6875, 0.6900
Support level: 0.6855, 0.6835
NZDUSD, Daily: NZDUSD was traded lower following prior breakout below the support level at 0.6630. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 0.6630, 0.6725
Support level: 0.6530, 0.6435
USDCAD, Daily: USDCAD was traded higher while currently testing the resistance level at 1.3165. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 1.3165, 1.3235
Support level: 1.3100, 1.3040
USDCHF, H1: 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 0.9720.
Resistance level: 0.9720, 0.9760
Support level: 0.9670, 0.9645
CrudeOIL, H4: Crude oil price was traded lower while currently near the support level at 55.60. MACD which illustrated increasing bearish momentum suggest the commodity to extend its losses after it successfully breakout below the support level.
Resistance level: 58.05, 59.50
Support level: 55.60, 53.95
GOLD_, H1: Gold price was traded higher while currently testing the resistance level at 1562.55. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 1562.55, 1567.55
Support level: 1556.25, 1550.15