20 December 2019 Morning Session Analysis
Sterling slumped amid to fears on no-deal Brexit
Pound Sterling plunged into two-week lows on Thursday after giving up all its post-election gains on renewed no-deal Brexit fears. Market optimism following the Conservative Party’s decisive win in last week’s general election has reduced after UK Prime Minister Boris Johnson set a hard deadline of December 2020 to agree a trade deal with the European Union. Indeed, according to Reuters, the European leaders reiterated that it would be challenging to agree on a post-Brexit trade deal by the end of 2020, spurring a further uncertainty on the Brexit issue. In addition, Pound Sterling received a further bearish momentum following the bleak data from the UK region was released. According to Office for National Statistics, U.K. Retail sales for the last month notched down from -0.1% to -0.6%, missing the economist forecast at the reading of 0.3%. In addition, the Bank of England kept its interest rates on hold. In fact, they will be eyeing on global growth risk, more stimulus can be anticipated if the course of events urges their economy growth goes again their expectation. On the other hand, dollar index was traded flat on Thursday as investors are still waiting for the release of U.S. gross domestic product data in order to retain further trading signal. As of writing, Pound Sterling surged 0.04% to 1.3010 while dollar index was traded flat at 97.41.
In the commodities market, the crude oil price edged higher yesterday, buoyed by the positive prospect for the trade deal. On the other hand, gold price rose on Thursday as investors sought the safe-haven metal as a hedge against U.S. political uncertainty after President Donald Trump became only the third U.S. President impeached. As of writing, crude oil price depreciated by 0.02% to $61.02 per barrel while gold price slumped by 0.03% to $1478.40 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 |
| 17.30 | GBP – GDP (QoQ) (Q3) | 0.3% | 0.3% | |
| 17:30 | GBP – GDP (YoY) (Q3) | 1.0% | 1.0% | – |
| 21:30 | USD – GDP (QoQ) (Q3) | 2.1% | 2.1% | – |
| 21:30 | CAD – Core Retail Sales (MoM) (Oct) | 0.2% | 0.3% | – |
Technical Analysis
DOLLAR_INDX, Daily: Dollar index was traded higher while currently testing the resistance level at 97.00. MACD which illustrated diminishing bearish momentum suggest the index to extend its gains after it successfully breakout above the resistance level.
Resistance level: 97.00, 97.55
Support level: 96.50, 95.90
GBPUSD, H4: GBPUSD was traded lower while currently testing the support level at 1.2985. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 1.3115, 1.3225
Support level: 1.2985, 1.2880
EURUSD, H4: EURUSD was traded within a range while currently near the support level at 1.1105. MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 1.1160, 1.1220
Support level: 1.1105, 1.1045
USDJPY, H4: USDJPY was traded lower while currently testing the support level at 109.30. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 109.65, 109.95
Support level: 109.30, 108.90
AUDUSD, Daily: AUDUSD was traded higher following prior breakout above the previous resistance level at 0.6875. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains toward resistance level at 0.6935.
Resistance level: 0.6935, 0.6985
Support level: 0.6875, 0.6815
NZDUSD, H4: NZDUSD was traded higher while currently testing the resistance level at 0.6620. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 0.6620, 0.6680
Support level: 0.6550, 0.6495
USDCAD, Daily: USDCAD was traded higher following prior rebound from the support level at 1.3100. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains toward resistance level at 1.3145.
Resistance level: 1.3145, 1.3185
Support level: 1.3100, 1.3055
USDCHF, Daily: USDCHF was traded lower following prior breakout below the previous support level at 0.9805. However, MACD which illustrated diminishing bearish momentum suggest the pair to extend its losses toward support level at 0.9730.
Resistance level: 0.9805, 0.9870
Support level: 0.9730, 0.9670
CrudeOIL, Daily: Crude oil price was traded higher following prior breakout above the previous resistance level at 60.25. MACD which illustrated increasing bullish momentum suggest the commodity to extend its gains toward resistance level at 61.60.
Resistance level: 61.60, 63.10
Support level: 60.25, 58.45
GOLD_, H4: Gold price was traded higher while currently testing the resistance level at 1480.25. MACD which illustrated diminishing bearish momentum suggest the commodity to extend its gains after it successfully breakout above the resistance level.
Resistance level: 1480.25, 1488.25
Support level: 1473.35, 1465.11