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30 September 2022                           Morning Session Analysis

Sterling continues its bull’s run following the bond intervention from BoE.

The Pound Sterling extends its gains significantly on Thursday, rebounding from recent lows amid the Bank of England conducted a second day of bond repurchasing program to stabilize the financial markets following the new Prime Minister Liz Truss’ tax-cutting plans triggered financial chaos. According to Reuters, the Bank of England had purchased around 1.415 billion pounds of UK government bonds with maturities of more than 20 years, recouping the losses for the UK government bond. The BoE reiterated that the bond purchases were designed to restore orderly market conditions. On the monetary policy front, the BoE Chief Economist Huw Pill claimed that the Bank of England would also likely to delivery another significant rate hike to prop up the value of the Pound Sterling and limit further inflation pressure. Meanwhile, Governor Andrew Bailey said that the BoE will not hesitate to increase interest rates if needed but added that the Monetary Policy Committee would make a full assessment of the situation at its November meetings. As of writing, GBP/USD appreciated by 0.31% to 1.1150.

 

In the commodities market, the crude oil price appreciated by 0.01% to $81.60 per barrel as of writing. The oil market was edged higher yesterday amid speculation of a production cut to be announced by OPEC+ next week, adding further concerns about the oil supply disruption in future. On the other hand, the gold price appreciated by 0.19% to $1663.75 per troy ounces as of writing amid weaking US Dollar following investors started to shift their portfolio from US Dollar into other currencies such as Pound Sterling.

 

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
14:00 GBP – GDP (YoY) -0.1%
15:55 EUR – German Unemployment Change (Sep) 28K 20K
17:00 EUR – CPI (YoY) (Sep) 9.1% 9.6%
20:30 USD – Core PCE Price Index (MoM) (Aug) 0.1% 0.4%
22:00 USD – Michigan Consumer Sentiment (Sep) 59.5 59.5

 

Technical Analysis

DOLLAR_INDX, Daily: Dollar index was traded lower following prior retracement from the resistance level. MACD which illustrated diminishing bullish momentum suggest the index to extend its losses.

 

Resistance level: 113.65, 117.30

Support level: 111.40, 107.55

 

GBPUSD, H4: GBPUSD was traded higher following prior breakout above the resistance level. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains.

 

Resistance level: 1.1415, 1.1730

Support level: 1.1065, 1.0890

 

EURUSD, H4: EURUSD was traded higher following prior breakout above the previous resistance level. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains.

 

Resistance level: 0.9915, 1.0145

Support level: 0.9740, 0.9550

 

USDJPY, Daily: USDJPY was traded higher while currently testing the resistance level. However, MACD which illustrated increasing bearish momentum suggest the pair to be traded lower as technical correction.

 

Resistance level: 145.35, 152.80

Support level: 140.75, 136.55

 

AUDUSD, H4: AUDUSD was traded higher while currently testing the resistance level. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains after breakout.

 

Resistance level: 0.6515, 0.6645

Support level: 0.6385, 0.6185

 

NZDUSD, Daily: NZDUSD was traded higher following prior rebounded from the support level. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains toward resistance level.

 

Resistance level: 0.5850, 0.6030

Support level: 0.5590, 0.5465

 

USDCAD, Daily: USDCAD was traded lower following prior retracement from the resistance level. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses.

 

Resistance level: 1.3775, 1.3970

Support level: 1.3365, 1.3100

 

USDCHF, H4: USDCHF was traded lower following prior retracement from the resistance level. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses toward support level.

 

Resistance level: 0.9855, 0.9965

Support level: 0.9640, 0.9515

 

CrudeOIL, H4: Crude oil price was traded higher while currently testing the resistance level. However, MACD which illustrated diminishing bullish momentum suggest the commodity to be traded lower as technical correction.

 

Resistance level: 81.95, 85.30

Support level: 76.80, 72.35

 

GOLD_, H1: Gold price was traded higher following prior breakout above the previous resistance level. MACD which illustrated increasing bullish momentum suggest the commodity to extend its gains.

 

Resistance level: 1671.00, 1681.85

Support level: 1659.35, 1651.20