Oil Surge Dollar Fell, What Next?
04/23/2020 at 10:08AM
In the G10 FX Market, NOK and NZD are the top gainers today, up 1.06% and 0.35% versus the dollar while EUR and CHF are the top losers, down -0.25% and -0.24% versus the dollar, respectively.
The dollar fell versus the commodity currencies on Thursday as a surge in crude prices helped the markets shaken by a sharp drop in demand by coronavirus pandemic. In our view, this see-saw will continue amid the current uncertainty. As we have said before there are opportunities whenever the market goes to extremes, however, it is also very risky to engage in these opportunities.
In the rates market, global yields were trading weaker with the US 10-year yield down -0.4bp trading at 0.614 and the German 10-year yield trading lower by -0.4bp around -0.421. In the Asian Session, Equities markets were trading mixed with S&P 500 futures -0.16% at 2784.12, the Nikkei 1.43% at 19412.0, and the Hang Seng 0.0% at 23894.0. In the energy space, the Brent front month is trading up 7.22% for the day at $21.84.
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 1.0837 for 1.0755
GBPUSD Chart (Two-week)
Strategy: Support at 1.2332 for 1.2389
USDJPY Chart (Two-week)
Strategy: Support at 107.31 for 107.95
AUDUSD Chart (Two-week)
Strategy: Support at 0.6317 for 0.6357