Risk On Risk Off Continues in the FX Market

Updated 10:00AM 18/05/2020

In the G10 FX Market, NOK and AUD are the top gainers today, up 0.53% and 0.39% versus the dollar while JPY and EUR are the top losers, down -0.12% and -0.11% versus the dollar, respectively. The U.S. dollar and safe-haven currencies moved lower on Monday as optimism of re-opening helped risk appetite, helping commodity currencies such as the Australian dollar and Norwegian krone.

 

In the rates market, global yields were trading weak today. The US 10-year was trading at 0.643, down -0.1bp. The Japan 10-year was trading at -0.013, down -1.1bp. The German 10-year was trading at -0.555, down -2.7bp. The UK 10-year was trading at 0.204, down -2.9bp. In the Asian equities, markets were trading stronger today. The Hang Seng was trading at 23968.25, up 0.72%. The Nikkei 225 was trading at 20127.0, up 0.45%. The Kospi was trading at 1937.11, up 0.51%. In the European equities, indices were trading firm today. The DAX 30 was trading at 10755.84, up 2.78%. The FTSE 100 was trading at 5929.65, up 2.24%. The Euro Stoxx 50 was trading at 2834.85, up 2.32%.

 

Looking at Equity Futures so far, the FTSE100 Futures was trading at 5924.0, up 2.26%. The Euro Stoxx 50 Futures was trading at 2822.0, up 2.51%. The SP500 Futures was trading at 2891.62, up 1.59%. In the Energy space, Oil futures were trading firm today. The WTI Crude Futures was trading at 30.93, up 5.1%. The Brent Crude Futures was trading at 33.66, up 3.57%.

 

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 1.0788 for 1.082
Short-term view: EUR/USD support comes in at 1.0788 MACD and RSI have a bullish bias. Hence, we see bounce to 1.082 enter at 1.0799. Below 1.0788 to open 1.0757

 

GBPUSD Chart (Two-week)

 
 

Strategy: Resistance at 1.2148 for 1.2057
Short-term view: GBP/USD resistance comes in at 1.2148 MACD and RSI have a bearish bias. Hence, we see a dip to 1.2057 enter at 1.2118. Above 1.2148 to open 1.2194

 

USDJPY Chart (Two-week)

 
 

Strategy: Support at 107.15 for 107.45
Short-term view: USD/JPY MACD and RSI are flat but support comes in at 107.15 and we see a dip to 107.45 enter at 107.25. Below 107.15 to open 106.87

 

AUDUSD Chart (Two-week)

 
 

Strategy: Support at 0.6431 for 0.646
Short-term view: AUDUSD support comes in at 0.6431 MACD and RSI have a bullish bias. Hence, we see bounce to 0.646 enter at 0.6441. Below 0.6431 to open 0.6388