10 January 2020 Morning Session Analysis
Pound fell amid to dovish statement from BoE.
Pound Sterling slumped yesterday following the Bank of England signals a possible rate cut in future. According to Reuters, Bank of England Governor Mark Carney yesterday claimed that there could be a “relatively prompt response” from the central bank if the course of events urge the UK economy growth goes against their expectation. After such statement, the money markets currently pricing in a 60% chance of a 25-basis point interest rate cut by December, which notched up from the previous expectation of 50% at the end of 2019. On the other hand, pound sterling received a further bearish momentum as the fear of hard-Brexit still remained. The UK Prime Minister Boris Johnson said that he will not ask for an extension of the transition period beyond 2020, while Ursula von der Leyen, the head of the European Commission said that it would be basically impossible to negotiate all aspects of the future relationship between the European Union and UK by the end of this year. Such sentiment had prompted some fears on the hard-Brexit, which spurring a significant sell-off of the Pound Sterling. However, at this time investors need to scrutinize the latest updates with regards of the meeting between UK and EU within this week in order to gauge the likelihood movement for the pair. As of writing, GBP/USD surged 0.04% to 1.3068.
In the commodities market, the crude oil price depreciated by 0.10% to $59.51 per barrel. The oil markets edged lower amid easing tensions in between US and Iran which has dialed down the speculation over possibility of the supply destruction from the Middle East. On the other hand, gold price fell on yesterday amid to risk-on sentiment in the market. Diminishing tension between U.S. and Iran had prompted a shift in sentiment for the investors towards a riskier asset while spurring some sell-off of the safe-haven metal. As of writing, gold price surged 0.02% to $1552.35 per troy ounces.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
N/A
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 21.30 | USD – Nonfarm Payrolls (Dec) | 266K | 160K | – |
| 21:30 | USD – Unemployment Rate (Dec) | 3.5% | 3.5% | |
| 21:30 | CAD – Employment Change (Dec) | -71.2K | 22.5K | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded higher following prior breakout above the previous resistance level at 96.95. However, MACD which illustrated diminishing bullish momentum suggest the index to be traded lower in short-term as technical correction.
Resistance level: 97.30, 97.60
Support level: 96.95, 96.65
GBPUSD, H4: GBPUSD was traded higher following prior rebound from the support level at 1.3020. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains toward resistance level at 1.3090.
Resistance level: 1.3090, 1.3175
Support level: 1.3020, 1.2940
EURUSD, Daily: EURUSD was traded lower following prior breakout below the previous support level at 1.1160. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses toward support level at 1.1075.
Resistance level: 1.1160, 1.1220
Support level: 1.1075, 1.1005
USDJPY, Daily: USDJPY was traded higher while currently testing the resistance level at 109.65. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 109.65, 110.55
Support level: 108.75, 107.70
AUDUSD, Daily: AUDUSD was traded lower following prior breakout below the support level at 0.6870. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses toward the support level at 0.6810.
Resistance level: 0.6870, 0.6915
Support level: 0.6810, 0.6760
NZDUSD, H4: NZDUSD was traded lower following prior breakout below the support level at 0.6620. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses toward support level at 0.6575.
Resistance level: 0.6620, 0.6675
Support level: 0.6575, 0.6525
USDCAD, H4: USDCAD was traded lower following prior retracement from the resistance level at 1.3110. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses toward support level at 1.3045.
Resistance level: 1.3110, 1.3180
Support level: 1.3045, 1.2965
USDCHF, Daily: USDCHF was traded higher while currently testing the resistance level at 0.9740. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 0.9740, 0.9810
Support level: 0.9670, 0.9585
CrudeOIL, H4: Crude oil price was traded lower while currently testing the support level at 59.30. However, MACD which illustrated diminishing bearish momentum suggest the commodity to be traded higher in short-term as technical correction.
Resistance level: 60.75, 62.45
Support level: 59.30, 57.90
GOLD_, H4: Gold price was traded lower while currently testing the support level at 1547.65. However, MACD which illustrated diminishing bearish momentum suggest the commodity to be traded higher in short-term as technical correction.
Resistance level: 1582.00, 1608.90
Support level: 1547.65, 1512.25