ECB Due Next, Coronavirus in China weigh on sentiment

Updated 10:13AM 23/01/2020


AUD and JPY are the top G10 FX gainers today, up 0.38% and 0.29% vs the dollar while CAD and NOK are the top losers, down -0.21% and -0.13% vs the dollar. The yen gained while China's yuan dipped to a two-week low as traders were worried that the spread of coronavirus in China will weigh on the economy. The Australian dollar rallied after a surprising drop in the domestic unemployment rate. The euro was calm ahead of the European Central Bank meeting where not much is expected in terms of policy action, however, we do see room for a move in euro if ECB errs on either side of the hawkish-dovish spectrum. Elsewhere, Sterling was steady after yesterday's gains, BoE rate cut bet now stands at 50% despite a positive employment report earlier this week. In the Asian equities, the Nikkei 225 closed -0.98% lower at 23,795.44, Hang Seng closed -1.52% at 27909.12 and Kospi ended -0.93% at 2246.13. The European equities were trading mixed with the FTSE -0.19% at 7557.59, DAX -0.4% at 13461.54, and CAC 0.04% at 6013.42. In the rates market, global yields were trading weaker; the US 10-year yield was trading at 1.7429% and the Bund 10-year yield trading at -0.273%. In the energy space, the Brent (front month) is trading down (-1.22%) for the day at $62.44.

 

Get Real-Time Forex Trade Ideas

 

https://research.tradermade.com/

 

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: Support at 1.1068 for 1.1136
Short-term view: EUR/USD support at 1.1068, MACD and RSI are improving. Hence, we see a move to 1.1136, likely 1.1170. Below 1.1068 to open 1.1037.

 

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.

 
Most Recent Posts
Risk On Risk Off Continues in the FX Market

Updated: May 18, 2020 10:00 UTC

Risk Off on Second Wave Worries Ahead of The Weekend

Updated: May 15, 2020 09:20 UTC

Forex Driven by Coronavirus Second Wave Worries

Updated: May 12, 2020 09:11 UTC

Risk On As Major Economies Lift Lock-down

Updated: May 11, 2020 10:56 UTC

BoE Helps Pound But Market Still Risk Averse

Updated: May 07, 2020 09:39 UTC

Pound Weakens, Yen at Multi Week High

Updated: May 06, 2020 09:32 UTC

Oil Rallies but Trade War Fears Remain

Updated: May 05, 2020 08:15 UTC

Trump Reignites Trade War Fears

Updated: May 01, 2020 09:06 UTC

Oil Recovery Helps Sentiments

Updated: Apr 30, 2020 10:28 UTC

Risk Sentiments Up With a Vaccine in Sight

Updated: Apr 29, 2020 09:18 UTC

FX Outlook Ahead of ECB and Fed

Updated: Apr 28, 2020 08:47 UTC

Boris Returns but Lock-down Extension May Weigh Heavy Sterling

Updated: Apr 27, 2020 08:58 UTC

Sterling Likely to Struggle, Here's Why?

Updated: Apr 24, 2020 08:36 UTC

Oil Surge Dollar Fell, What Next?

Updated: Apr 23, 2020 10:08 UTC

Crude Oil Making Financial Markets Nervous

Updated: Apr 22, 2020 10:37 UTC

Crude Oil Fall Unnerves Markets, What to Do

Updated: Apr 21, 2020 08:58 UTC

Sterling in Trouble, Risk Sentiments Fragile

Updated: Apr 20, 2020 09:05 UTC

Coronavirus - We Have Not Seen the Bottom Yet

Updated: Apr 17, 2020 08:55 UTC

Economic Downturn Likely to Worsen Further, Here's Why

Updated: Apr 16, 2020 09:21 UTC

Riskier Assets Vulnerable Here's Why

Updated: Apr 15, 2020 09:03 UTC