Risk On As Major Economies Lift Lock-down

Updated 10:56AM 11/05/2020

In the G10 FX Market, USD and NOK are the top gainers today while NZD and JPY are the top losers, down -0.64% and -0.58% versus the dollar, respectively. In the rates market, global yields were trading stronger today. The UK 10-year was trading at 0.257, up 2.4bp. The German 10-year was trading at -0.524, up 1.4bp. The US 10-year was trading at 0.691, up 0.6bp. The Japan 10-year was trading at 0.009, up 0.4bp.

 

The U.S. dollar gained versus the Japanese yen on Monday as the United States and other European countries re-opened their economies. There are hopes of a quicker global recovery compared to a deep recession imagined earlier due to the Coronavirus pandemic. That said, the second wave may likely come and this will be net negative risky assets.

 

In the Asian equities, markets were trading mixed today. The Hang Seng was trading at 24637.0, up 1.68%. The Nikkei 225 was trading at 20381.0, up 1.0%. The Kospi was trading at 1935.4, down -0.54%. In the European equities, indices were trading mixed today. The FTSE 100 was trading at 5937.75, up 0.03%. The Euro Stoxx 50 was trading at 2901.75, down -0.22%. The DAX 30 was trading at 10871.7, down -0.3%. Looking at Equity Futures so far, the FTSE100 Futures was trading at 5927.8, up 0.07%. The SP500 Futures was trading at 2927.12, down -0.05%. The Euro Stoxx 50 Futures was trading at 2884.0, down -0.24%.

 

In the Energy space, Oil futures were trading weaker today. The WTI Crude Futures was trading at 24.0, down -2.99%. The Brent Crude Futures was trading at 30.2, down -2.49%.

 

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: Support at 1.0783 for 1.0843
Short-term view: EUR/USD EURUSD support comes in at 1.0783 MACD and RSI have a bullish bias. Hence, we see bounce to 1.0843 enter at 1.0803. Below 1.0783 to open 1.0751

 

GBPUSD Chart (Two-week)

 
 

Strategy: Support at 1.2295 for 1.2409
Short-term view: GBP/USD support comes in at 1.2295 MACD and RSI have a bullish bias. Hence, we see bounce to 1.2409 enter at 1.2333. Below 1.2295 to open 1.2237

 

USDJPY Chart (Two-week)

 
 

Strategy: Support at 107.08 for 107.41
Short-term view: USD/JPY support comes in at 107.08 MACD and RSI have a bullish bias. Hence, we see bounce to 107.41 enter at 107.19. Below 107.08 to open 106.86

 

AUDUSD Chart (Two-week)

 
 

Strategy: Resistance at 0.6524 for 0.6468
Short-term view: AUDUSD MACD and RSI are flat but resistance comes in at 0.6524 and we see a dip to 0.6468 enter at 0.6507. Above 0.6524 to open 0.6555