31 January 2020 Morning Session Analysis
Pound skyrocketed following BoE maintained its interest rate.
Pound Sterling surged yesterday following the Bank of England maintained their interest rate at 0.75%, defying the market expectations that 50% probability of a cut in order to boost up the economy. In earlier, Britain’s economy suffered at the end of 2019, prompting several policymakers to claim that they would vote for a rate cut within this month unless the economy have shown some improvement. However, 7 Monetary Policy Committee voted for maintaining the interest at 0.75% while 2 members vote to lower rates yesterday. The Bank of England decision had slashed the investors expectation for a rate cut in this month, while insinuating significant demand for the pound sterling. On the Brexit front, at this time investors would continue to scrutinize the latest updates with regards of the trade negotiations between European Union and UK after the Britain officially leaves the European Union today. On the other hand, US Dollar slumped yesterday amid a report that show the U.S. economy in 2019 posted its slowest annual growth in three years and that personal consumption weakened dramatically. According to Bureau of Economic Analysis, U.S. Gross Domestic Product (GDP) for last month came in at 2.1%, which showed no deviation from the previous expectation. However, U.S. Real Consumer Spending had notched down from the previous reading of 3.2% to 1.8% while U.S. Initial Jobless Claims in at 216K, missing the economist forecast at 215K, spurring some bearish pressure on the US Dollar. As of writing, GBP/USD slumped 0.04% to 1.3086 while dollar index slumped 0.13% to 97.63.
In the commodity market, the crude oil slumped 0.23% to $52.79 per barrel as of writing. The oil market slumped on yesterday amid to the fears of outbreak coronavirus would harm the world economic, which further reduce the demand for the crude oil in the future. On the other hand, the gold price surged 0.07% to $1574.53 per troy ounces amid to weaker greenback.
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 |
| 18:00 | EUR – CPI (YoY) (Jan) | 1.3% | 1.4% | – |
| 21:30 | CAD – GDP (MoM) (Nov) | -0.1% | 0.1% | – |
| 02:00
(1st) |
CrudeOIL – U.S. Baker Hughes Oil Rig Count | 676 | – | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded lower while currently testing the support level at 97.60. MACD which illustrated increasing bullish momentum suggest the index to extend its losses after it successfully breakout below the support level.
Resistance level: 97.85, 98.15
Support level: 97.60, 97.35
GBPUSD, H4: GBPUSD was traded higher while currently testing the resistance level at 1.3095. However, MACD which illustrated diminishing bullish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 1.3095, 1.3160
Support level: 1.2980, 1.2920
EURUSD, Daily: EURUSD was traded higher following prior rebound from the support level at 1.1005. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains toward resistance level at 1.1080.
Resistance level: 1.1080, 1.1135
Support level: 1.1005, 1.0955
USDJPY, H4: USDJPY was traded higher following prior rebound from the support level at 108.70. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains toward resistance level at 109.55.
Resistance level: 109.55, 110.15
Support level: 108.70, 107.85
AUDUSD, H4: AUDUSD was traded lower while currently testing the support level at 0.6700. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 0.6755, 0.6850
Support level: 0.6700, 0.6670
NZDUSD, Daily: NZDUSD was traded lower while currently testing the support level at 0.6480. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 0.6625, 0.6725
Support level: 0.6480, 0.6420
USDCAD, Daily: USDCAD was traded higher following prior breakout above the previous resistance level at 1.3165. However, MACD which illustrated diminishing bullish momentum suggest the pair to extend its gains toward resistance level at 1.3245.
Resistance level: 1.3245, 1.3335
Support level: 1.3165, 1.3100
USDCHF, H4: USDCHF was traded higher following prior rebound from the support level at 0.9680. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains toward resistance level at 0.9700.
Resistance level: 0.9700, 0.9725
Support level: 0.9680, 0.9660
CrudeOIL, H1: Crude oil price was traded higher following prior rebound from the support level at 52.05 MACD which illustrated increasing bullish momentum suggest the commodity to extend its gains toward resistance level at 53.95.
Resistance level: 53.95, 55.60
Support level: 52.05, 50.75
GOLD_, H1: Gold price was traded lower while currently near the support level at 1573.05. MACD which illustrated increasing bearish momentum suggest the commodity to extend its losses after it successfully breakout below the support level.
Resistance level: 1579.85, 1585.45
Support level: 1573.05, 1568.10