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ECB Dovish, BoE Could Be Next

Updated 11:17AM 24/01/2020

NZD and CAD are the top G10 FX gainers today, up 0.02% and -0.03% vs the dollar while SEK and CHF are the top losers, down -0.19% and -0.16% vs the dollar. Euro fell to near seven-week lows after the ECB was more dovish in its assessment of the economy than many had expected. European Central Bank President Christine Lagarde said that risks to the euro-zone growth remained skewed to the downside. Elsewhere, Sterling remained near this week's peaks after surveys showed that U.K. companies are having their best month in over a year, That said, the potential upside could be limited as a Bank of England rate cut looms in the background. In the Asian equities space, the Nikkei 225 closed up 0.13% at 23,827.18 and Hang Seng closed 0.15% at 27949.64. The European equities were trading firm with the FTSE up +1.42% at 7614.16, DAX up +1.28% at 13560.3, and CAC up +1.33% at 6051.22. In the rates market, global yields were trading mixed; the US 10-year yield was trading at 1.7342% and the Bund 10-year yield trading at -0.299%. In the energy space, the Brent (front month) is trading up (0.08%) for the day at $62.09.

 

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Economic Calendar

 
 

10-year Yields Daily Chart (6-month)

 
 

Daily FX Pivots

 
 

Brent Front Month Daily Chart (6-month)

 
 

USD-Index Daily Chart (6-month)

 
 

(Content and Data by Tradermade)

 

Forex Chart and Technical Analysis

 

EURUSD Chart (Two-week)

 
 

Strategy: Resistance at 1.1100 for 1.1000
Short-term view: EUR/USD resistance at 1.1100, MACD and RSI are weakening. Hence, we see a move to 1.1000. Above 1.1100 to open 1.1134.

 

GBPUSD Chart (Two-week)

 
 

Strategy: Resistance at 1.3150, for 1.3050
Short-term view: GBP/USD resistance at 1.3150, MACD and RSI are topping out. Hence, we expect a dip to 1.3050. Above 1.3150 to open 1.3222.

 

USDJPY Chart (Two-week)

 
 

Strategy: Resistance at 109.80 for 108.81
Short-term view: USD/JPY resistance at 109.80, RSI and MACD are weakening. A move lower to 108.81 is likely. Above 109.80 to open 110.27.

 

AUDUSD Chart (Two-week)

 
 

Strategy: Support at 0.6833 for 0.6920
Short-term view: AUD/USD MACD and RSI are bottoming and support at 0.6833. A move towards 0.6920 is likely. Below 0.6833 to open 0.6780.