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)
Forex Chart and Technical Analysis
EURUSD Chart (Two-week)
Strategy: Support at 1.077 for 1.0834
GBPUSD Chart (Two-week)
Strategy: Resistance 1.2417 at for 1.2302
USDJPY Chart (Two-week)
Strategy: Support at 106.24 for 106.88
AUDUSD Chart (Two-week)
Strategy: Support at 0.644 for 0.6476