03 April 2020 Afternoon Session Analysis
Pound sterling remain stable following aid package.
The pound sterling which traded against the greenback and its peers remain standing on high ground in overall during late Asian session following hopes of coronavirus aid packages. During early Asia, UK Chancellor Rishi Sunak unveils a new measure to SME loan scheme which extended the state-backed aid packages to medium-sized firms with turnovers as high as £500 million. The government is also stopping lenders from requesting personal guarantees for loans under £250,000 and making changes to speed up lending approvals. On the other hand, Health Secretary Matt Hancock also suggested the idea of issuing certificates for people who have built up immunity to the coronavirus to return to normal life. At the same time, he has also a new target of carrying out 100,000 Covid-19 tests a day in England by the end of April. The combination of good news has continued to support the strength for the currency. However, potential upside may be limited as market continue to assess the condition after Centre for Business and Economic Research (CEBR) predicted that the UK’s GDP could plummet by 15% between this year’s first and second quarters due to the impact of the coronavirus. Market will now focus on upcoming data such as UK Service PMI to determine further confirmation for the pair. At the time of writing, GBP/USD edge higher 0.06% to 1.2383 as of writing.
In the commodities market, crude oil price retreats 2.94% to $23.98 per barrel as of writing amid rising doubts on Saudi Arabia and Russia deal. Despite U.S. President Donald Trump tweeted that Saudi Arabia and Russia had agreed to a potential cut of 10 million barrels or more, investors express towards the deal that is too little and too late. At the same time, analysts also doubted that the two producers will reduce supply without a coordinated cut from other big suppliers such as the U.S. and Canada. In the other hand, gold price jumped 0.09% to $1613.35 a troy ounce at the time of writing as investors flocked to the yellow metal amid ongoing risk of coronavirus.
Today’s Holiday Market Close
Time Market Event
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Today’s Highlight Events
Time Market Event
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Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 16:30 | GBP – Services PMI (Mar) | 35.7 | 34.8 | – |
| 20:30 | USD – Nonfarm PAyrolls (Mar) | 273K | -100K | – |
| 20:30 | USD – Unemployment Rate (Mar) | 3.5% | 3.8% | – |
| 22:00 | USD – ISM Non-Manufacturing PMI (Mar) | 57.3 | 44.0 | – |
| 01:00 (4th) | CrudeOIL – U.S. Baker Hughes Oil Rig Count | 624 | – | – |
Technical Analysis
DOLLAR_INDX, Daily: Dollar index was traded higher following prior breakout above the previous resistance level at 99.75. MACD which illustrate diminishing bearish momentum suggest the dollar to extend its gains toward the resistance level at 101.20.
Resistance level: 101.20, 102.90
Support level: 99.75, 98.30
GBPUSD, H1: GBPUSD was traded flat within the sideway channel. Due to lack of signal from MACD, it is suggested to wait for further confirmation such as breakout or rebound before entering into market.
Resistance level: 1.2470, 1.2605
Support level: 1.2340, 1.2230
EURUSD, H4: EURUSD was traded lower while currently testing the support level at 1.0835. MACD which illustrate bearish bias momentum suggests the pair to extend its losses after it successfully breakout below the support level at 1.0835.
Resistance level: 1.0900, 1.1000
Support level: 1.0835, 1.0790
USDJPY, H4: USDJPY was traded higher following prior rebound from the support level at 107.15. MACD which illustrate bullish bias momentum signal suggests the pair to extend its gains toward the resistance level at 108.30.
Resistance level: 108.30, 109.25
Support level: 107.15, 106.00
AUDUSD, Daily: AUDUSD was traded lower while currently testing the support level at 0.6035. MACD which illustrate diminishing bullish momentum suggest the pair to extend its losses after it successfully breakout below the support level at 0.6035.
Resistance level: 0.6350, 0.6720
Support level: 0.6035, 0.5720
NZDUSD, Daily: NZDUSD was traded lower while currently testing near the support level at 0.5865. MACD which illustrate diminishing bullish momentum suggest the pair to extend its losses after it successfully breakout below the support level at 0.5685.
Resistance level: 0.6075, 0.6250
Support level: 0.5865, 0.5620
USDCAD, H1: USDCAD was traded higher following prior rebound from the upward trendline. MACD which illustrate bullish momentum signal and the formation of golden cross suggest the pair to extend its gains toward the resistance level at 1.4190.
Resistance level: 1.4190, 1.4335
Support level: 1.3990, 1.3805
USDCHF, H1: USDCHF was traded lower following prior retracement from the resistance level at 0.9745. MACD which illustrate bearish momentum signal suggest the pair to extend its losses toward the support level at 0.9685.
Resistance level: 0.9745, 0.9825
Support level: 0.9685, 0.9650
CrudeOIL, H1: Crude oil price was traded lower following prior retracement from the higher level. MACD which illustrate bearish momentum signal suggest the commodity to extend its losses toward the support level at 23.15.
Resistance level: 24.95, 25.85
Support level: 23.15, 21.80
GOLD_, Daily: Gold price was traded higher following prior breakout above the previous resistance level at 1602.55. MACD which illustrate bullish bias momentum suggest the commodity to extend its gains toward the resistance level at 1634.90.
Resistance level: 1634.90, 1664.70
Support level: 1602.55, 1579.00