Risk Off on Second Wave Worries Ahead of The Weekend

Updated 09:20AM 15/05/2020

In the G10 FX Market, JPY and EUR are the top gainers today, up 0.13% and 0.03% versus the dollar while GBP and SEK are the top losers, down -0.2% and -0.18% versus the dollar, respectively. The threat of a second wave of coronavirus infections kept investors biased towards safe-haven currencies with the U.S. dollar set for a weekly gain and the Australian dollar looking at a 1% drop this week.

 

In the rates market, global yields were trading weaker today. The US 10-year was trading at 0.615, down -0.2bp. The Japan 10-year was trading at -0.007, down -0.3bp. The German 10-year was trading at -0.547, down -1.4bp. The UK 10-year was trading at 0.197, down -1.7bp.

 

In the Asian equities, markets were trading mixed today. The Nikkei 225 was trading at 20019.5, up 0.53%. The Kospi was trading at 1927.28, up 0.12%. The Hang Seng was trading at 23805.0, down -0.1%. In the European equities, indices were trading stronger today. The DAX 30 was trading at 10512.6, up 1.74%. The FTSE 100 was trading at 5822.35, up 1.41%. The Euro Stoxx 50 was trading at 2792.55, up 1.23%. Looking at Equity Futures so far, the FTSE100 Futures was trading at 5812.8, up 1.54%. The Euro Stoxx 50 Futures was trading at 2778.0, up 1.54%. The SP500 Futures was trading at 2855.38, up 0.29%. In the Energy space, Oil futures were trading firm today. The Brent Crude Futures was trading at 31.88, up 2.41%. The WTI Crude Futures was trading at 28.12, up 2.03%.

 

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 1.0828 for 1.0777
Short-term view: EUR/USD MACD and RSI are flat but resistance comes in at 1.0828 and we see a dip to 1.0777 enter at 1.0811. Above 1.0828 to open 1.0851

 

GBPUSD Chart (Two-week)

 
 

Strategy: Support at 1.2185 for 1.2261
Short-term view: GBP/USD MACD and RSI are flat but support comes in at 1.2185 and we see a dip to 1.2261 enter at 1.2207. Below 1.2185 to open 1.2137

 

USDJPY Chart (Two-week)

 
 

Strategy: Support at 106.88 for 107.47
Short-term view: USD/JPY support comes in at 106.88 MACD and RSI have a bullish bias. Hence, we see a bounce to 107.47 enter at 107.07. Below 106.88 to open 106.53

 

AUDUSD Chart (Two-week)

 
 

Strategy: Support at 0.6445 for 0.6487
Short-term view: AUDUSD support comes in at 0.6445 MACD and RSI have a bullish bias. Hence, we see a bounce to 0.6487 enter at 0.6459. Below 0.6445 to open 0.6421