FX Outlook Ahead of ECB and Fed

04/28/2020 at 08:47AM

In the G10 FX Market, SEK and GBP are the top gainers today, up 0.4% and 0.3% versus the dollar while NZD and CHF are the top losers, down -0.26% and -0.19% versus the dollar, respectively. Swedish Krone jumped after Riksbank surprised markets by keeping rates on hold.


The dollar is slightly on a weaker footing and FX markets are poised ahead of Fed and ECB meetings later this week. Oil prices crash has made the situation worse and we have still not seen any significant improvements in economic activity as nations have struggled to lift lockdown caused by Coronavirus Pandemic. ECB is likely to struggle with limited option to do provide more stimulus as compared to the Fed, BoE, and the BoJ that can print more currency. However, markets will be keen to see what the European Central Banks comes up with.


In the rates market, global yields were trading mixed with the US 10-year yield down-0.5bp trading at 0.659 and the German 10-year yield trading higher by 0.7bp around -0.439. In the Asian Session, Equities markets were trading mixed with S&P 500 futures 0.15% at 2873.38, the Nikkei -0.2% at 19743.5, and the Hang Seng 1.32% at 24599.75. In the energy space, the Brent front month is trading up 10.91% for the day at $22.17.


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: Resistance at 1.0856 for 1.0807
Short-term view: EUR/USD MACD and RSI are flat but resistance comes in at 1.0856 and we see a dip to 1.0807 enter at 1.0844. Above 1.0856 to open 1.0882


GBPUSD Chart (Two-week)


Strategy: Resistance at 1.251 for 1.2415
Short-term view: GBP/USD MACD and RSI are flat but resistance comes in at 1.251 and we see a dip to 1.2415 enter at 1.2479. Above 1.251 to open 1.2566


USDJPY Chart (Two-week)


Strategy: Resistance at 107.29 for 106.66
Short-term view: USD/JPY MACD and RSI are flat but resistance comes in at 107.29 and we see a dip to 106.66 enter at 107.08. Above 107.29 to open 107.59


AUDUSD Chart (Two-week)


Strategy: Resistance at 0.6497 for 0.644
Short-term view: AUDUSD MACD and RSI are flat but resistance comes in at 0.6497 and we see a dip to 0.644 enter at 0.6482. Above 0.6497 to open 0.6529