FxWirePro: Thai baht depreciates drastically after trade balance data; hits lowest level since May 2019
FxWirePro: South Korean won rises in early Asia despite lower than expected consumer confidence data
FxWirePro: Taiwanese dollar falls gradually against U.S. dollar, Taiwan’s industrial production data in focus
FxWirePro: Currency Weekly Outlook
The Yen, gold continues to shine as a coronavirus death toll increased to 80. US consulate in the city said that it has prepared to evacuate citizens. The yen recovered sharply against USD almost 100 pips on the increase in demand for Safe-haven assets.
DXY is trading higher for 3rd consecutive week and jumped more than 150 pips from minor bottom 96.36. The index has broken major resistance around 97.85, a jump till 98.25/98.60 possible. It is currently trading around 97.88.
The BOC has kept its rates unchanged at 1.75% as expected and downgraded GDP growth projections in 4Q19. The central bank has removed the reference to the current rate as "appropriate". The dovish stance dragged the Canadian dollar further down. Euro was trading in red after dovish ECB any violation below 1.09800 will drag the pair down till 1.0880.
The precious metal has recovered sharply more than $50 after hitting a low of $1536. Any break above $1582 (61.8% fib) confirms bullish continuation, a jump till $1600/$1611 likely.
US 10 year bond yield is trading weak for the past 2-week and lost more than 14% from temporary top 1.90. The spread between US 10- year and 2 years has narrowed to 19 bps from 35.7 bps.
Major trend reversal level- 1.1180
Near term support- 1.0980/1.0880
Near term resistance – 1.1120/ 1.1180
Major trend reversal level- 107.80
Near term support- 108.30/107.80
Near term resistance – 109.75/110.30
Major trend reversal level- 0.9645
Near term support- 0.9645/0.9540
Near term resistance – 0.9770/0.9845
Major trend reversal level- 1.3180
Near term support- 1.3100/1.3020
Near term resistance – 1.3180/1.3300
Major trend reversal level- $1611
Near term support- $1560/$1535
Near term resistance – $1611/$1640
Major trend reversal level- $50
Near term support- $50/$43
Near term resistance – $55/$57.60
Major Economic events for the week
US Durable goods orders – Tuesday (1:30 pm)
US CB Consumer Confidence - Tuesday (3 pm GMT)
US Fed monetary policy –Wed (7:00 pm GMT)
GBP BOE Monetary policy -Thursday (12:00 pm GMT)
US Advance GDP - Thursday (1:30 pm GMT)
Canada GDP m/m- Friday (10:00 pm)