Boris Returns but Lock-down Extension May Weigh Heavy Sterling

Updated 08:58AM 27/04/2020

In the G10 FX Market, AUD and NZD are the top gainers today, up 0.86% and 0.66% versus the dollar while CHF and USD are the top losers.

 

The yen moved higher along with other commodity currencies after the Bank of Japan provided more stimulus to help businesses amid coronavirus crisis. Sterling is likely to struggle as UK PM announced that it may be a while before lockdown is lifted. He may likely err on the safe side which is going to be a negative on the economy hence the Pound.

 

In the rates market, global yields were trading weaker with the US 10-year yield up +1.0bp trading at 0.615 and the German 10-year yield up 0.1bp trading around -0.473. In the Asian Session, Equities markets were trading firm with S&P 500 futures up 1.1% at 2850.62, the Nikkei up 2.5% at 19743.5, and the Hang Seng up 2.11% at 24334.0 In the energy space, the Brent (front month) is trading down (-5.46%) for the day at $23.72.

 

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: Support at 1.0794 for 1.086
Short-term view: EUR/USD support comes in at 1.0794 MACD and RSI have a bullish bias. Hence, we see a bounce to 1.086 enter at 1.0816. Below 1.0794 to open 1.0757

 

GBPUSD Chart (Two-week)

 
 

Strategy: Support at 1.2395 for 1.2474
Short-term view: GBP/USD support comes in at 1.2395 MACD and RSI have a bullish bias. Hence, we see a bounce to 1.2474 enter at 1.2421. Below 1.2395 to open 1.2347

 

USDJPY Chart (Two-week)

 
 

Strategy: Resistance at 107.55 for 106.94
Short-term view: USD/JPY resistance comes in at 107.55 MACD and RSI have a bearish bias. Hence, we see a dip to 106.94 enter at 107.35. Above 107.55 to open 107.72

 

AUDUSD Chart (Two-week)

 
 

Strategy: Support at 0.644 for 0.6479
Short-term view: AUDUSD support comes in at 0.644 MACD and RSI have a bullish bias. Hence, we see a bounce to 0.6479 enter at 0.645. Below 0.644 to open 0.6417