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What to expect from U.K. Election, Fed and the ECB

Updated 10:16AM 10/12/2019


CHF and EUR are the top G10 FX gainers today, up 0.2% and 0.14% vs the dollar while NOK and AUD are the top losers, down -0.51% and -0.1% vs the dollar. The euro was flat versus the dollar as investors remained wary of a looming U.S. tariffs deadline on China. There are major forex events this week including the British election, Federal Reserve and European Central Bank meetings. However, with Sino-U.S. trade uncertainty we expect little from both the ECB and the Fed. As for the British election, Sterling edged higher despite weak economic data. The base case is for a Conservative majority with any upset likely to cause a sharp dip in the British Pound. In the Asian equities space, the Nikkei 225 closed -0.9% lower at 23,410.19, Hang Seng closed -0.22% at 26436.62 and Kospi ended 0.45% at 2098.0. The European equities were trading weaker with the FTSE down -1.3% at 7139.85, DAX down -1.43% at 12917.7, and CAC down -0.96% at 5781.24. In the rates market, global yields were trading mixed; the US 10-year yield was trading at 1.8138% and the Bund 10-year yield trading at -0.288%. In the energy space, the Brent (front month) is trading down (-0.33%) for the day at $64.04.

 

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Daily Pivots for Key Currency Pairs

 
 

Economic Calendar

 
 

10-year Yields Chart (6-month)

 
 

Brent Front Month Daily Chart (6-month)

 
 

USD-Index Daily Chart (6-month)

 
 

(Content and Data by Tradermade)

 

Major Currency Pairs

 

EURUSD Chart (Two-week)

 
 

Strategy: Resistance at 1.1089 for 1.1037
Short-term view: EUR/USD resistance at 1.1089, MACD and RSI are weak. Hence, we see a move to 1.1037. Above 1.1089 to open 1.1136.

 

GBPUSD Chart (Two-week)

 
 

Strategy: Resistance at 1.3178, for 1.3096
Short-term view: GBP/USD resistance at 1.3178, MACD and RSI are weak. Hence, we expect a dip to 1.3096. Above 1.3178 to open 1.3222.

 

USDJPY Chart (Two-week)

 
 

Strategy: Resistance at 108.81 for 108.01
Short-term view: USD/JPY resistance at 108.81, RSI and MACD are weak. A move lower to 108.01 is likely. Above 108.81 to open 109.47

 

AUDUSD Chart (Two-week)

 
 

Strategy: Resistance at 0.6836 for 0.6780
Short-term view: AUD/USD MACD and RSI are weakening and resistance at 0.6836. A move towards 0.6780 is likely. Above 0.6836 to open 0.6862