Oil Rallies but Trade War Fears Remain
05/05/2020 at 08:15AM
In the G10 FX Market, JPY and CHF are the top gainers today, up 0.27% and 0.22% versus the dollar while AUD and NZD are the top losers, down -1.0% and -0.65% versus the dollar, respectively.
In the G10 FX Market, JPY and USD are the top gainers today while NOK and SEK are the top losers, down -1.03% and -0.64% versus the dollar, respectively.
The RBA left rates on hold but forecasted a bleak economy with a sharp contraction in the first six months of this year and double-digit unemployment rate. The sentiments were positive on oil rally but sino-U.S. trade war fears tempered risk sentiments.
In the rates market, global yields were trading mixed today. The German 10-year was trading at -0.564, up 2.2bp. The UK 10-year was trading at 0.238, down -0.8bp. The US 10-year was trading at 0.608, down -1.0bp.
The U.S. dollar rallied versus major currencies amid fears of a trade war resumption between U.S. and China. In our view, this could damage the already fragile system but more than that the uncertainty alone will kill any risk appetite.
In the Asian equities, markets were trading weaker today. The Kospi was trading at 1895.37, down -2.68%. The Hang Seng was trading at 23542.0, down -4.47%. In the European equities, indices were trading weak today. The FTSE 100 was trading at 5749.4, down -0.24%. The Euro Stoxx 50 was trading at 2830.12, down -3.34%. The DAX 30 was trading at 10531.75, down -3.04%.
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 1.0926 for 1.0876
GBPUSD Chart (Two-week)
Strategy: Support at 1.2445 for 1.2486
USDJPY Chart (Two-week)
Strategy: Resistance at 106.81 for 106.54
AUDUSD Chart (Two-week)
Strategy: Support at 0.6411 for 0.6474