Sterling in Trouble, Risk Sentiments Fragile

Updated 09:05AM 20/04/2020

In the G10 FX Market, NZD and AUD are the top gainers today, up 0.41% and 0.06% versus the dollar while NOK and GBP are the top losers, down -0.46% and -0.42% versus the dollar, respectively.

 

The dollar was up broadly versus its rivals as concerns over global growth helped the safe-haven currencies and weighed on risky assets. Sterling came under pressure as the death toll mounted with no lockdown ending in sight. There is a number of scandals reported by the newspapers on Sunday chief being UK PM Boris johnson not attending first five Cobra (emergency) meetings on Coronavirus. This is likely to weigh on sterling especially with Boris in favour of an extended lockdown (according to rumours).

 

In the rates market, global yields were trading weaker with the US 10-year yield down -0.8bp trading at 0.634 and the German 10-year yield trading lower by -0.7bp around -0.478. In the Asian Session, Equities markets were trading mixed with S&P 500 futures 0.03% at 2849.88, the Nikkei -1.25% at 19648.0, and the Hang Seng -0.12% at 24351.5 In the energy space, the Brent (front month) is trading down (-1.97%) for the day at $27.31.

 

10-year Yields Daily Chart (6-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 1.0827 for 1.0908
Short-term view: EUR/USD MACD and RSI are flat but support comes in at 1.0827 and we see a dip to 1.0908 enter at 1.0854. Below 1.0827 to open 1.0779

 

GBPUSD Chart (Two-week)

 
 

Strategy: Resistance at 1.2477 for 1.2361
Short-term view: GBP/USD MACD and RSI are flat but resistance comes in at 1.2477 and we see a dip to 1.2361 enter at 1.2439. Above 1.2477 to open 1.2548

 

USDJPY Chart (Two-week)

 
 

Strategy: Support at 107.64 for 107.98
Short-term view: USD/JPY support comes in at 107.64 MACD and RSI have a bullish bias. Hence, we see a bounce to 107.98 enter at 107.75. Below 107.64 to open 107.2.

 

AUDUSD Chart (Two-week)

 
 

Strategy: Support at 0.6355 for 0.6395
Short-term view: AUDUSD support comes in at 0.6355 MACD and RSI have a bullish bias. Hence, we see a bounce to 0.6395 enter at 0.6368. Below 0.6355 to open 0.6324.