7 November 2019                              Afternoon Session Analysis

Brexit deadlock remain while market eyes on BoE policy.

Pound sterling retraced from its two weeks high level as market lingering with doubts about the Bank of England (BoE) respond toward the uncertainties exerted by Brexit issue. As of now, majority of the market participants expect BoE will have no changes in their monetary policy on today’s meeting, where to leave the interest rate at current rate 0.75%. This is because uncertainty over around Brexit issue has left a strong mark on UK economic data, affecting the economy growth negatively. In overall, market sentiment toward this single currency is still remain tepid as market are still awaiting for the results of general election on 12th December. The election will determine whether Boris Johnson party able to capture a majority in parliament and sign a final deal with European Union. As of writing, the pair of GBP/USD surged 0.04% to 1.2845. On the other hand, greenback which act as major currency rose 0.02% to 97.80 as recent news shows that Trump and Xi has delayed to December as both countries premiers are still deciding the terms and venue of the trade deal. According to US official, the possible location of next meeting is London where two leaders could meet after NATO summit.

 

In the commodities market, crude oil price inched down 0.14% to $56.25 per barrel after the phase 1 trade deal between US and China has delayed to December. Thus, markets are still remain pessimistic toward the outlook of crude oil demand as trade war remain unsolved. Besides, gold price rose 0.04% to $1490.90 a troy ounce amid dampening of market risk sentiment.

 

Today’s Holiday Market Close

Time                       Market                  Event

N/A

 

Today’s Highlight Events

Time                       Market                  Event

20:00                     GBP                                        BoE Inflation Report

20:00                     GBP                                        BoE MPC Meeting Minutes

20:30                     GBP                                        BoE Gov Carney Speaks

 

Today’s Highlight Economic Data

Time Nation & Data Previous Forecast Actual
20:00 GBP – BoE Interest Rate Decision (Nov) 0.75% 0.75%
21:30 USD – Initial Jobless Claims 218K 215K

 

Technical Analysis

DOLLAR_INDX, Daily: Dollar index was traded higher following prior breakout above the previous resistance level at 97.55. MACD which illustrated increasing bullish momentum suggest the index to extend its gains toward resistance level at 97.95.

 

Resistance level: 97.95, 98.40

Support level: 97.55, 96.90

 

GBPUSD, Daily: GBPUSD was traded lower following prior retracement from the resistance level at 1.2980. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses toward support level at 1.2780.

 

Resistance level: 1.2980, 1.3180

Support level: 1.2780, 1.2560

 

EURUSD, Daily: EURUSD was traded lower following prior breakout below the previous support level at 1.1075. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses toward support level at 1.1010.

 

Resistance level: 1.1075, 1.1165

Support level: 1.1010, 1.0955

 

USDJPY, Daily: USDJPY was traded lower following prior retracement from the resistance level at 109.05. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.

 

Resistance level: 109.05, 109.90

Support level: 107.95, 107.00

 

AUDUSD, Daily: AUDUSD was traded lower following prior breakout below the previous support level at 0.6875. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses toward support level at 0.6810.

 

Resistance level: 0.6875, 0.6930

Support level: 0.6810, 0.6755

 

NZDUSD, H4: NZDUSD was traded lower while currently testing the support level at 0.6345. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.

 

Resistance level: 0.6390, 0.6430

Support level: 0.6345, 0.6310

 

USDCAD, Daily: USDCAD was traded higher following prior rebound from the support level at 1.3145. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains toward resistance level at 1.3210.

 

Resistance level: 1.3210,1.3260

Support level: 1.3145, 1.3085

 

USDCHF, Daily: USDCHF was traded higher following prior breakout above the previous resistance level at 0.9905. MACD which illustrated diminishing bearish momentum suggest the pair to extend its gains toward resistance level at 0.9950.

 

Resistance level: 0.9950, 1.0025

Support level: 0.9905, 0.9870

 

CrudeOIL, H4: Crude oil price was traded lower following prior breakout below the previous support level at 56.85. MACD which illustrated increasing bearish momentum suggest its price to extend its losses toward support level at 56.05.

 

Resistance level: 56.85, 57.45

Support level: 56.05, 55.45

 

GOLD_, H4: Gold price was traded higher while currently testing the resistance level at 1491.65. MACD which illustrated diminishing bearish momentum suggest the commodity to extend its gains after it successfully breakout above the resistance level.

 

Resistance level: 1491.65, 1497.05

Support level: 1486.40, 1481.30