14 January 2020 Morning Session Analysis
Pound slumped amid to bleak economic data.
Pound Sterling slumped on yesterday following bleak economic data from the UK region, lifting the likelihood that the Bank of England will cut interest rates this month. According to Office for National Statistics, U.K Manufacturing Production for the last month notched down from the preliminary reading of 0.5% to -1.7%, missing the economist forecast at -0.3%. Meanwhile, the U.K. Gross Domestic Product (GDP) for last month came in at only -0.3%, massive reduction from the previous reading of 0.1%. In earlier, Bank of England Governor Mark Carney and two other rate-setters, Silvan Tenreyro and Gertjan Vlieghe, claimed last week that they would continue to scrutinize upon economic growth in UK, while more stimulus can be anticipated if the course of events urge their economy growth goes against their expectation. In fact, these data were both fared worse than expectation, which further dial down market optimism towards economic progression in the United Kingdom while strengthens the belief of a further rate cut in future. At this time, the investors expected a 50% probability of a rate cut by the end of January while 85% probability of rate cut in May, reported by Reuters. As of writing, GBP/USD appreciated by 0.03% to 1.2991.
In the commodities market, the crude oil price appreciated by 0.12% to $58.11 per barrels as of writing. However, the oil market edged lower yesterday amid easing tensions in the Middle East and worries that oil market could get into another oversupply situation from seasonal lows in consumption. On the other hand, gold price was traded lower on yesterday as positive expectation for the “phase one” trade deal between U.S. and China, spurring some sell-off for the safe-haven metal. As of writing, gold price slumped 0.05% to $1547.00 per troy ounces.
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 |
| 21:30 | USD – Core CPI (MoM) (Dec) | 0.2% | 0.2% | – |
Technical Analysis
DOLLAR_INDX, Daily: Dollar index was traded higher while currently testing the resistance level at 97.10. MACD which illustrated increasing bullish momentum suggest the index to extend its gains after it successfully breakout above the resistance level.
Resistance level: 97.10, 97.60
Support level: 96.65, 96.15
GBPUSD, H4: GBPUSD was traded lower while currently testing the support level at 1.2960. MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 1.3140, 1.3270
Support level: 1.2960, 1.2800
EURUSD, H4: EURUSD was traded higher while currently testing the resistance level at 1.1145. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 1.1145, 1.1170
Support level: 1.1080, 1.0990
USDJPY, H4: USDJPY was traded higher following prior breakout above the previous resistance level at 109.55. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains toward resistance level at 110.55.
Resistance level: 110.55, 111.10
Support level: 109.55, 108.55
AUDUSD, H4: AUDUSD was traded lower following prior retracement from the resistance level at 0.6920. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses toward support level at 0.6865.
Resistance level: 0.6920, 0.6965
Support level: 0.6865, 0.6810
NZDUSD, H4: NZDUSD was traded lower while currently testing the support level at 0.6615. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 0.6675, 0.6735
Support level: 0.6615, 0.6560
USDCAD, H4: USDCAD was traded lower while currently testing the support level at 1.3045. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 1.3110, 1.3180
Support level: 1.3045, 1.2965
USDCHF, H4: USDCHF was traded lower following prior retracement from the resistance level at 0.9740. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses toward support level at 0.9670.
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 57.95. However, MACD which illustrated diminishing bearish momentum suggest the commodity to be traded higher in short-term as technical correction.
Resistance level: 59.25, 60.75
Support level: 57.95, 56.45
GOLD_, H4: Gold price was traded lower following prior breakout below the previous support level at 1550.30. MACD which illustrated increasing bearish momentum suggest the commodity to extend its losses toward support level at 1528.75.
Resistance level: 1550.30, 1582.00
Support level: 1528.75, 1509.70