14 March 2019 Morning Session Analysis
Sterling shines as MP reject No-Deal Brexit.
Pound sterling remains as the focus of the week as investors mull parliamentary voting results which would determine UK’s Brexit fate. Overnight, pound sterling jumped more than 1,600 basis points despite political chaos in the UK as members of the parliament (MP) rejects the motion to leave European Union without a withdrawal agreement under any circumstances. While the vote which is passed with 312 to 308 is not legally binding, MPs will now set to cast their vote tomorrow morning over a motion to delay Brexit deadline on March 29th. Following the vote earlier today, UK Prime Minister Theresa May mentioned that the options remains the same and it includes a “damaging” second referendum that may cancel Brexit altogether. Otherwise, greenback remains in the foreground following a slew of bearish economic data from the region. According to US Labor Department, Producer Price Index (PPI) for the month of February came in at only 0.1%, missing economist forecast for 0.2%. In addition, US Commerce Department reported that total Core Durable Goods Orders fell by 0.1%, confounding forecast for a rise of up to 0.1%. Overall, prior optimism which surrounds US economy has somehow faded and it begins with last week’s lull Nonfarm Payrolls report despite decade high pace of wage growth and lower unemployment rate. For the time being, investors will continue to scrutinize the probable change in Federal Reserve’s policy stance by assessing future economic release from the US. As of writing, pair of GBP/USD depreciate slightly by 0.18% to 1.3314 while the dollar index extended losses by 0.48% to 96.36.
In the commodities market, crude oil price extended its bullish momentum by 0.07% to $58.36 per barrel. Oil futures received a bullish boost after Energy Information Administration reported a draw in US crude oil stocks by 3.9 million barrels last week, better than economist forecast for an increase of 2.65 million barrels. Similarly, gold price rose 0.07% to $1,309.65 a troy ounce following weaker greenback.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
19:00 CrudeOIL OPEC Monthly Report
03:00 (15th) GBP UK Parliament vote on Extension of Brexit Date
Today’s Highlight Economic Data
| Time | Market & Data | Previous | Forecast | Actual |
| 15:00 | EUR – German CPI (MoM) (Feb) | 0.5% | 0.5% | – |
| 20:30 | USD – Import Price Index (MoM) (Feb) | -0.5% | 0.3% | – |
| 20:30 | USD – Initial Jobless Claims | 223K | 225K | – |
| 22:00 | USD – New Home Sales (Jan) | 621K | 622K | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded higher following prior rebound from its lower level. MACD which illustrate diminished downward momentum may suggests the index to be traded higher in short-term as technical correction.
Resistance level: 96.45, 97.05
Support level: 95.95, 95.55
GBPUSD, H1: GBPUSD was traded lower following prior retracement from 1.3350. MACD which illustrate diminishing upward momentum suggests the pair to be traded lower in short-term as technical correction.
Resistance level: 1.3350, 1.3400
Support level: 1.3240, 1.3170
EURUSD, H4: EURUSD was traded higher following prior closure above 1.1300. However, MACD histogram which illustrate diminished upward momentum suggests the pair to experience technical correction for short-term.
Resistance level: 1.1340, 1.1400
Support level: 1.1300, 1.1260
USDJPY, H4: USDJPY remains traded within an ascending channel while currently testing at the bottom level. MACD which begins to form a death cross signal suggests the pair to extend its losses following a successful breakout from the bottom.
Resistance level: 111.45, 112.20
Support level: 111.00, 110.50
AUDUSD, H1: AUDUSD was traded lower following prior retracement from the resistance at 0.7100. MACD which illustrate diminished upward momentum suggests the pair to be traded lower in short-term as technical correction.
Resistance level: 0.7100, 0.7120
Support level: 0.7075, 0.7050
NZDUSD, H4: NZDUSD was traded lower following prior retracement from its higher levels. MACD which begins to form a death cross signal suggests the pair to be traded lower in short-term towards 0.6840.
Resistance level: 0.6885, 0.6940
Support level: 0.6840, 0.6820
USDCAD, H4: USDCAD was traded higher following prior rebound from the lower level. MACD which illustrate diminishing downward momentum may suggests the pair to be traded higher in short-term as technical correction.
Resistance level: 1.3300, 1.3350
Support level: 1.3220, 1.3175
USDCHF, H4: USDCHF was traded lower following prior closure below 1.0040. MACD which continues to illustrate bearish signal suggests the pair to extend its losses in mid-term, towards the direction of 0.9995.
Resistance level: 1.0040, 1.0070
Support level: 0.9995, 0.9945
CrudeOIL, H4: Crude oil price was traded lower following prior retracement from the resistance of 58.55. MACD which illustrate diminished upward momentum suggests its prices to be traded lower in short-term as technical correction.
Resistance level: 58.55, 59.65
Support level: 57.45, 56.45
GOLD_, H4: Gold price was traded lower following prior retracement from its higher levels. MACD which illustrate diminishing upward momentum suggests its prices to be traded lower in short-term as technical correction.
Resistance level: 1315.45, 1326.50
Support level: 1305.60, 1294.00