04 June 2020 Afternoon Session Analysis
Loonie rose following BoC decision.
The Canadian Loonie which traded against the greenback and other currency pairs have continue to strengthen its value during late Asian session following the events of BoC interest rate decision, according to data, the Bank of Canada has left its interest rate unchanged at 0.25% as expected. However, the central bank stressed that those current borrowing costs are the effective lower bound and that negative rates are not under active consideration. Besides that, it also stated that it is scaling back some of its market operations after announcing bond-buying back in March where it is at the peak of the financial distress related to coronavirus. As the prospect of negative rates was being clearly rejected, the statement has provided a huge boost for the sentiment, thus helping the Loonie to extend its momentum. At the time of writing, USD/CAD fell 0.05% to 1.3509.
In the commodities market, crude oil price retreats 0.09% to $36.53 per barrel as of writing amid expectation of OPEC to delay policy meeting date. According to reports, OPEC+ announced that it was unlikely to pull up its policy meeting to discuss extending productions cuts until the end of August. OPEC also stressed that the meeting would be conditional on countries non-compliant with the agreed targets cutting their production to those targets first. On the other hand, gold price rebounds 0.34% to 1704.86 a troy ounce after suffered huge losses recently due to increasing risk appetite.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
19:45 EUR ECB Monetary Policy Statement
20:30 EUR ECB Press Conference
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 16:30 | GBP – Construction PMI (May) | 8.2 | 29.7 | – |
| 19:45 | EUR – Deposit Facility Rate (Jun) | -0.50% | -0.50% | – |
| 19:45 | EUR – ECB Marginal Lending Facility | 0.25% | – | – |
| 19:45 | EUR – ECB Interest Rate Decision (Jun) | 0.00% | 0.00% | – |
| 20:30 | USD – Initial Jobless Claims | 2,123K | 1,800K | – |
Technical Analysis
DOLLAR_INDX, Daily: Dollar index was traded lower while currently testing the support level at 97.10. However, MACD which illustrated diminishing bearish momentum suggest the index to be traded higher in short-term as technical correction.
Resistance level: 98.30, 99.05
Support level: 97.10, 96.05
GBPUSD, H4: GBPUSD was traded lower following prior retracement from the resistance level at 1.2590. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses toward support level at 1.2435.
Resistance level: 1.2590, 1.2745
Support level: 1.2435, 1.2290
EURUSD, Daily: EURUSD was traded higher while currently testing the resistance level 1.1235. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 1.1235, 1.1335
Support level: 1.1160, 1.1075
USDJPY, Daily: USDJPY was traded higher while currently testing the resistance level at 108.95. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 108.95, 109.90
Support level: 107.80, 106.40
AUDUSD, H1: AUDUSD was traded lower following prior retracement from the resistance level at 0.6950. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses toward support level at 0.6850.
Resistance level: 0.6950, 0.7010
Support level: 0.6850, 0.6735
NZDUSD, H1: NZDUSD was traded within a range while currently testing the resistance level at 0.6435. MACD which illustrated increasing bearish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 0.6435, 0.6525
Support level: 0.6335, 0.6205
USDCAD, H4: USDCAD was traded lower while currently testing the support level at 1.3500. However, MACD which illustrated increasing bullish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 1.3735, 1.3890
Support level: 1.3500, 1.3310
USDCHF, Daily: USDCHF was traded lower while currently testing the support level at 0.9595. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 0.9735, 0.9835
Support level: 0.9595, 0.9505
CrudeOIL, Daily: Crude oil price was traded higher while currently testing the resistance level at 36.95. However, MACD which illustrated diminishing bullish momentum suggest the commodity to be traded lower in short-term as technical correction.
Resistance level: 36.95, 44.40
Support level: 27.85, 20.45
GOLD_, H1: Gold price was traded higher following prior rebound from the support level at 1696.30. MACD which illustrated increasing bullish momentum suggest the commodity to extend its gains toward resistance level at 1712.15.
Resistance level: 1712.15, 1722.00
Support level: 1696.30, 1685.90