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)
Forex Chart and Technical Analysis
EURUSD Chart (Two-week)
Strategy: Resistance at 1.0856 for 1.0807
GBPUSD Chart (Two-week)
Strategy: Resistance at 1.251 for 1.2415
USDJPY Chart (Two-week)
Strategy: Resistance at 107.29 for 106.66
AUDUSD Chart (Two-week)
Strategy: Resistance at 0.6497 for 0.644