Moody's Downgrade China's Growth, Global Economy in Question
Updated 10:08AM 18/02/2020
JPY and CHF are the top G10 FX gainers today, up 0.16% and 0.05% vs the dollar while NOK and SEK are the top losers, down -0.75% and -0.58% vs the dollar. The yuan weakened to near 7 per dollar as concerns over the economy deepened following Moody's downgrade of China's growth for 2020. The Australian and New Zealand Dollar are also likely to suffer amid mounting cost of the coronavirus epidemic. Elsewhere, euro may continue to struggle as investor confidence in the eurozone economy continue to wither ahead of the German Zew Survey. In the Asian equities space, the Nikkei 225 closed -1.40% lower at 23,193.80, Hang Seng closed -1.54% at 27530.2 and Kospi ended -1.48% at 2208.88. The European equities were trading weaker with the FTSE down -0.4% at 7403.56, DAX down -0.8% at 13673.99, and CAC down -0.6% at 6049.44. In the rates market, global yields were trading mixed; the US 10-year yield was trading at 1.5406% and the Bund 10-year yield trading at -0.427%. In the energy space, the Brent (front month) is trading down (-1.89%) for the day at $56.58.
10-year Yields Daily Chart (6-month)
Daily FX Pivots
Brent Crude Daily Chart (1-month)
Forex Chart and Technical Analysis
EURUSD Chart (Two-week)
Strategy: Resistance at 1.0853 for 1.0806
GBPUSD Chart (Two-week)
Strategy: Resistance at 1.3020 for 1.2930
USDJPY Chart (Two-week)
Strategy: Resistance at 109.85 for 109.50
EURGBP Chart (Two-week)
Strategy: Support at 0.8324 for 0.8356
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