07 May 2021 Morning Session Analysis
Pound slumped over the dovish statement from BoE.
Pound Sterling slumped on yesterday following the Bank of England maintain its interest rate at 0.10%, while setting the UK’s inflation target at 2% in order to sustain economic growth as well as employment. Besides, the Bank of England also reduced its bond purchases from £4.4 billion to £3.4 billion to meet its unchanged £875 billion year-end target. On top of that, the Bank of England also increased its inflation target, forecasting the consumer price index would temporarily spike up above its 2% target toward the year-end. Nonetheless, similar to Federal Reserve, BoE believes that the pace of inflation will run out of steam in future. Market participants continue to bet that the Bank of England will continue to maintain its expansionary monetary policy in long-term basis, which diminishing the appeal of the Pound Sterling. On the economic data front, the losses experienced by the Pound Sterling was limited over the backdrop of the upbeat economic data from UK region. According to Markit Economics, U.K. Composite Purchasing Managers’ Index (PMI) notched up from 56.4 to 60.7, fared better than market expectation at 60.0. Meanwhile, U.K. Services Purchasing Managers Index (PMI) came in at 61.0, which also exceeding the market expectation at 60.1. As of writing, GBP/USD depreciated by 0.08% to 1.3895.
In the commodities market, the crude oil price slumped 0.11% to $64.90 per barrel as of writing. The oil market extends its losses amid spiking numbers of the Covid-19 cases in India continue to weigh down the market sentiment toward the crude oil demand. On the other hand, the gold price surged 0.03% to $1814.70 per troy ounces as of writing as investors remain their concern over the high inflation risk in future, which prompting them to shift their portfolio to gold in order to hedge against the inflation risk.
Today’s Holiday Market Close
Time Market Event
N/A
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 – Construction PMI (Apr) | 61.7 | 62.5 | – |
| 20:30 | USD – Nonfarm Payrolls (Apr) | 916K | 978K | – |
| 20:30 | USD – Unemployment Rate (Apr) | 6.0% | 5.7% | – |
| 20:30 | CAD – Employment Change (Apr) | 303.1K | -187.5K | – |
| 22:00 | CAD – Ivey PMI (Apr) | 72.9 | 60.5 | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower while currently testing the support level at 90.80. MACD which illustrated increasing bearish momentum suggest the index to extend its losses after it successfully breakout below the support level.
Resistance level: 91.30, 91.75
Support level: 90.80, 90.45
GBPUSD, H4: GBPUSD was traded lower following prior retracement from the resistance level at 1.3910. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses toward support level at 1.3800.
Resistance level: 1.3910, 1.4000
Support level: 1.3800, 1.3755
EURUSD, H4: EURUSD was traded higher while currently testing the resistance level at 1.2065. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 1.2065, 1.2130
Support level: 1.1985, 1.1920
USDJPY, H4: USDJPY was traded lower while currently testing the support level at 109.05. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 109.65, 110.35
Support level: 109.45, 108.45
AUDUSD, H4: AUDUSD was traded higher following prior breakout above the previous resistance level at 0.7755. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains toward resistance level at 0.7815.
Resistance level: 0.7815, 0.7850
Support level: 0.7755, 0.7695
NZDUSD, H4: NZDUSD was traded higher while currently testing the resistance level at 0.7235. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 0.7235, 0.7320
Support level: 0.7110, 0.7015
USDCAD, Daily: USDCAD was traded lower while currently testing the support level at 1.2245. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 1.2385, 1.2625
Support level: 1.2145, 1.1870
USDCHF, H4: USDCHF was traded lower while currently testing the support level at 0.9075. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 0.9155, 0.9225
Support level: 0.9075, 0.8985
CrudeOIL, Daily: Crude oil price was traded lower following prior retracement from the resistance level at 66.15. MACD which illustrated diminishing bullish momentum suggest the commodity to extend its losses toward support level at 63.50.
Resistance level: 66.15, 67.80
Support level: 63.50, 60.95
GOLD_, H4: Gold price was traded higher while currently testing the resistance level at 1816.90. MACD which illustrated increasing bullish momentum suggest the commodity to extend its gains after it successfully breakout above the resistance level.
Resistance level: 1816.90, 1841.65
Support level: 1794.40, 1765.90