BoE Helps Pound But Market Still Risk Averse

05/07/2020 at 09:39AM

In the G10 FX Market, AUD and NZD are the top gainers today, up 0.81% and 0.56% versus the dollar while JPY and NOK are the top losers, down -0.29% and -0.13% versus the dollar, respectively. The U.S. dollar is likely to remain strong over the coming 3-months as the investor prefers safety amid the coronavirus crisis, a Reuters poll suggested.


The Bank of England did not announce fresh stimulus on Thursday but said it is likely to take more action curb the current economic slump the level of which is not seen over the past 300 years. Sterling improved slightly as BoE forecasted a strong recovery in 2021.


In the rates market, global yields were trading stronger today. The German 10-year was trading at -0.493, up 2.3bp. The UK 10-year was trading at 0.25, up 1.7bp. The Japan 10-year was trading at 0.001, up 1.0bp. The US 10-year was trading at 0.711, up 0.2bp.


In the Asian equities, markets were trading mixed today. The Nikkei 225 was trading at 19639.0, up 0.1%. The Kospi was trading at 1928.61, down -0.01%. The Hang Seng was trading at 24013.0, down -0.52%. In the European equities, indices were trading firm today. The DAX 30 was trading at 10678.33, up 0.64%. The FTSE 100 was trading at 5873.62, up 0.34%. The Euro Stoxx 50 was trading at 2858.4, up 0.46%. Looking at Equity Futures today. The SP500 Futures was trading at 2867.12, up 1.19%. The FTSE100 Futures was trading at 5861.8, up 0.53%. The Euro Stoxx 50 Futures was trading at 2838.0, up 0.64%.


In the Energy space, Oil futures were trading firm today. The WTI Crude Futures was trading at 24.12, up 0.54%. The Brent Crude Futures was trading at 29.75, up 0.1%.


10-year Yields Daily Chart (1-month)


Daily FX Pivots


Brent Crude Daily Chart (1-month)


(Content and Data by Tradermade)


Forex Chart and Technical Analysis


EURUSD Chart (Two-week)


Strategy: Support at 1.077 for 1.0834
Short-term view: EUR/USD MACD and RSI are flat but support comes in at 1.077 and we see a dip to 1.0834 enter at 1.0791. Below 1.077 to open 1.0744


GBPUSD Chart (Two-week)


Strategy: Resistance 1.2417 at for 1.2302
Short-term view: GBP/USD resistance comes in at 1.2417 MACD and RSI have a bearish bias. Hence, we see a dip to 1.2302 enter at 1.2379. Above 1.2417 to open 1.2491


USDJPY Chart (Two-week)


Strategy: Support at 106.24 for 106.88
Short-term view: USD/JPY MACD and RSI are flat but support comes in at 106.24 and we see a dip to 106.88 enter at 106.41. Below 106.24 to open 105.85


AUDUSD Chart (Two-week)


Strategy: Support at 0.644 for 0.6476
Short-term view: AUDUSD MACD and RSI are flat but support comes in at 0.644 and we see a dip to 0.6476 enter at 0.6452. Below 0.644 to open 0.6417


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