Pound Weakens, Yen at Multi Week High

Updated 09:32AM 06/05/2020

In the G10 FX Market, JPY and SEK are the top gainers today, up 0.22% and 0.08% versus the dollar while EUR and CHF are the top losers, down -0.23% and -0.18% versus the dollar, respectively. The euro fell while the Japanese yen moved to a seven-week high versus the U.S. dollar. The British Pound is also weak ahead of BoE policy meeting on Thursday but we expect lockdown details on Thursday to be more of a market mover.

 

In the rates market, global yields were trading stronger today. The German 10-year was trading at -0.561, up 1.4bp. The US 10-year was trading at 0.674, up 1.2bp. The UK 10-year was trading at 0.215, up 1.2bp.

 

In the Asian equities, markets were trading firm today. The Hang Seng was trading at 24173.5, up 1.28%. The Kospi was trading at 1928.76, up 1.76%. In the European equities, indices were trading mixed today. The FTSE 100 was trading at 5865.2, up 0.27%. The Euro Stoxx 50 was trading at 2871.65, down -0.13%. The DAX 30 was trading at 10719.4, down -0.11%.

 

Looking at Equity Futures so far, the SP500 Futures was trading at 2879.12, up 0.73%. The FTSE100 Futures was trading at 5845.8, up 0.23%. The Euro Stoxx 50 Futures was trading at 2848.0, down -0.14%. In the Energy space, Oil futures were trading mixed today. The Brent Crude Futures was trading at 31.04, up 0.23%. The WTI Crude Futures was trading at 24.41, down -0.61%.

 

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: Resistance at 1.0863 for 1.08
Short-term view: EUR/USD resistance comes in at 1.0863 MACD and RSI have a bearish bias. Hence, we see a dip to 1.08 enter at 1.0842. Above 1.0863 to open 1.09

 

GBPUSD Chart (Two-week)

 
 

Strategy: Support at 1.2408 for 1.2446
Short-term view: GBP/USD MACD and RSI are flat but support comes in at 1.2408 and we see a dip to 1.2446 enter at 1.2421. Below 1.2408 to open 1.2383

 

USDJPY Chart (Two-week)

 
 

Strategy: Resistance at 106.62 for 106.14
Short-term view: USD/JPY resistance comes in at 106.62 MACD and RSI have a bearish bias. Hence, we see a dip to 106.14 enter at 106.46. Above 106.62 to open 106.82

 

AUDUSD Chart (Two-week)

 
 

Strategy: Resistance at 0.6442 for 0.6408
Short-term view: AUDUSD MACD and RSI are flat but resistance comes in at 0.6442 and we see a dip to 0.6408 enter at 0.6433. Above 0.6442 to open 0.6468