Daily Market Analysis

Market Focus

The torrid rally in U.S. stocks pushed the S&P500 into the green for the year as easing lockdowns bolstered economic optimism. A jump to a 15-week high on Monday extended the benchmark’s surge from its March low to almost 45%.

On the day record-keepers declared the U.S. is in recession. Fed expanded its main Street Lending Program, which it said will be open for eligible lenders soon, allowing more companies to participate and lessening the burden on banks that create the loan

The euro lagged peers amid falling European bond yields as ECB president asked for quick adoption of the EU recovery fund. Chairman of ECB signaled her institution is willing to play a more active role in responding to a critical ruling by Germany’s constitutional court over its monetary policy.

Market Wrap

Dow Jones rose 1.69%, S&P500 up by 1.2 % and Nasdaq rallied by 10.78%
WTI July decreased by $1.36 to $38.19, and Brent Oil July decreased by $1.5 at $40.8 while near closing.
Dollar Index fell by 0.23%.
Gold rallied 0.8% and sit around $1698.53
AUDUSD up 0.74% to 0.7021
EURUSD up 0.02% to 1.1294
GBPUSD up 0.44% to 1.2724
NZDUSD up 0.81% to 0.65600
USDCAD down 0.3% to 1.3382
USDJPY down 1.06% to 108.43

Main Pairs Movement

Greenback fell for an eighth session, it longest losing streak in more than nine years, as U.S. shares extended their advance amid corporate deal making, a slowing virus count, improving economic data and expectations for ongoing Fed accommodation. Trading volumes were generally muted ahead of Wednesday’s FOMC meeting.

Kiwi dollar rose as much as 0.8% that reach late January at .06540 which is highest level, as the nation move to end social distancing requirements after reporting zero active cases of Covid-19.

COVID-19 Data (EOD):

Technical Analysis:

GBPUSD (H4)

GBPUSD has continued its nearly 2 week rally and traded highs of 1.2725. Other than Brexit and the lockdown in the U.K., pound traders should also look at any implications for sterling from what could be the biggest healthcare deal on record.

According to CFTC data, speculative traders are turning their attention back to Brexit from the coronavirus, and their mood is souring by the day. Speculative net sterling positions bets have reached the most since November, while Cititgroup’s FX Pain index for the currency is lowest since 2018.

Resistance: 1.27295, 1.28325

Support: 1.2660, 1.26240, 1.25045

USDCAD (H4)

Loonie appreciated amid broader greenback weakness and before a report slated to show domestic housing starts climbed at a slower pace in May that beat expectation. it down 0.2% and fell 2.6% last week in third straight weekly decline. Meanwhile, WTI dropped -0.9% to 39.19 per barrel. OPEC and its allies agreed to extend output curbs by an additional month, but Saudi Arabia signaled it would not continue with another and deeper curbs after June.

Resistance: 1.3533, 1.374, 1.3835

Support: 1.3385, 1.3327, 1.3273

USDJPY (H4)

Although USDJPY went on a rally on Friday, hitting the highest level in two months around 110.00, the pair dropped drastically on Monday. The pullback seems exacerbated, but it could continue. Although there lacked any obvious fundamental catalyst that drive this downfall, last Friday’s blockbuster US monthly jobs report might be the reason why there is a renewed selling pressure on the USD/JPY pair. We expect the pair to stay along the support level at around 107.270 regions.

Resistance: 108.907, 109.240, 109.755

Support: 107.138, 107.945, 108.270

Economic Data

Currency	Data	Time (TP)	Forecast
NZD	ANZ Business Confidence	09:00
AUD	NAB Business Confidence (May)	09:30
USD	JOLTs Job Opening (Apr)	22:00	5M

Risk Warning:

Trading Forex and CFDs involves significant risk and can result in the loss of your invested capital. You should not invest more than you can afford to lose and should ensure that you fully understand the risks involved. Trading leveraged products may not be suitable for all investors. Before trading, please take into consideration your level of experience, investment objectives and seek independent financial advice if necessary. Please read our legal documents and ensure that you fully understand the risks before you make any trading decisions.

The information provided is of a general nature only and the advice has been prepared without taking account of your objectives, financial situation or needs.