04 March 2020 Morning Session Analysis
Dollar index fell following the dovish decision from Fed.
The Dollar index which traded against a basket of six major currency pairs slumped following the Federal Reserve delivered a surprise rate cut in order to cushion the potential damage from the spread of the coronavirus on the economy on yesterday. According to Reuters, though Fed Chair Jerome Powell reiterated that the U.S. economy remains strong, he acknowledged that the spread of the virus had prompted a material change in the U.S. central bank’s decision for the economy growth in Untied Stated. Hence, the Federal Open Market Committee decided yesterday to lower the target range for the federal funds rate by a half percentage point to a target range of 1.00% to 1.25% in order to boost up the economic growth within the United Stated. On the other hand, the safe-haven asset such as Japanese Yen surged on yesterday as investors remained anxious about the economic fallout due to the coronavirus outbreak. On the coronavirus front, the infections rose again in South Korea and Iran. Besides that, UK has reported 51 new cases while Japan’s total cases had increased to more than 1,000 people and Spain rose 32% to 150 people. As of writing, the Dollar index slumped 0.22% to 97.10 while USD/JPY depreciated by 0.15% to 106.95.
In the commodities market, the crude oil price slumped 0.34% to $46.95 per barrels as of writing. The oil market edged lower yesterday as investors’ fears that the outbreak of the coronavirus would harm the global economy, which might be diminishing the demand for this black-commodity in future. However, at this time investors would continue scrutinize the latest updates with regards of the OPEC meeting on Thursday and wider OPEC+ meeting on Friday in order to gauge the likelihood movement for the commodity. On the other hand, as of writing the gold price appreciated by 0.48% to $1646.40 per troy ounces amid to weaker US dollar.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
Tentative GBP BoE MPC Treasury Committee Hearings
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 17:30 | GBP – Composite PMI (Feb) | 53.3 | 53.3 | – |
| 17:30 | GBP – Services PMI (Feb) | 53.3 | 53.3 | – |
| 21:15 | USD – ADP Nonfarm Employment Change (Feb) | 291K | 170K | – |
| 23:00 | USD – ISM Non-Manufacturing PMI (Feb) | 55.5 | 54.9 | – |
| 23:00 | CAD – BoC Interest Rate Decision | 1.75% | 1.75% | – |
| 23:30 | CrudeOIL – Crude Oil Inventories | 0.452M | – | – |
Technical Analysis
DOLLAR_INDX, Daily：Dollar index was lower while currently testing the support level at 97.00. MACD which illustrated increasing bearish momentum suggest the index to extend its losses after it successfully breakout below the support level.
Resistance level: 97.60, 98.20
Support level: 97.00, 96.50
GBPUSD, Daily: GBPUSD was traded higher following prior rebound from the support level at 1.2760 MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains toward resistance level at 1.2940.
Resistance level: 1.2940, 1.3165
Support level: 1.2760, 1.2585
EURUSD, Daily: EURUSD was traded higher while currently testing the resistance level at 1.1175. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 1.1175, 1.1240
Support level: 1.1130, 1.1065
USDJPY, H4: USDJPY was traded lower while currently testing the support level at 106.80. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 107.55, 108.45
Support level: 106.80, 106.00
AUDUSD, Daily: AUDUSD was traded higher following prior rebound from the support level at 0.6480. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains toward resistance level at 0.6720.
Resistance level: 0.6720, 0.6915
Support level: 0.6480, 0.6285
NZDUSD, H4: NZDUSD was traded lower while currently testing the support level at 0.6270. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 0.6325, 0.6400
Support level: 0.6270, 0.6205
USDCAD, H4: USDCAD was traded higher while currently testing the resistance level at 1.3380. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 1.3380, 1.3450
Support level: 1.3310, 1.3235
USDCHF, Daily: USDCHF was traded lower while currently testing the support level at 0.9540. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 0.9620, 0.9715
Support level: 0.9540, 0.9465
CrudeOIL, Daily: Crude oil price was traded higher following prior breakout above the previous resistance level at 45.45. MACD which illustrated diminishing bearish momentum suggest the commodity to extend its gains toward resistance level at 51.45.
Resistance level: 51.45, 57.45
Support level: 45.45, 43.00
GOLD_, H4: Gold price was traded higher following prior rebound from the support level at 1626.65. MACD which illustrated increasing bullish momentum suggest the commodity to extend its gains toward resistance level at 1654.45.
Resistance level: 1654.45, 1683.10
Support level: 1626.65, 1588.45