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Daily Outlook – 15 June 2020
By: Andria Pichidi
Wall Street managed to move higher following Thursday’s harsh declines. – China shut down several markets in Beijing, the US continues to report a record number of cases, Tokyo also reported a jump. – RISK OFF
Chinese data weigh on the confidence – Slump in Retail Sales and Industrial Production
Topix and Nikkei lost -1.5% and -2.4% respectively, U.S. futures are extending losses, with the NASDAQ down -2%, the Dow Jones mini 3%. DAX and FTSE100 futures are posting losses of -2.2% and -2.0% respectively.
Deal by Autumn? – The UK has now formally ruled out extending its post-Brexit transition access to the EU’s single market and customs union, which ups the ante for both sides. Johnson will set an autumn deadline – video conference today!
• Morrison says virus will slash A$100bn from economy
• UK Times reports on a further £150 billion of stimulus expected from the BoE • BoJ: could make small adjustments in its support of corporate bonds.
USOIL – Baker-Hughes U.S. oil rig down for 13th consecutive week – Below S1, currently at $34.50 – OPEC meeting 18th June
USD ndex – advanced up to 97.30 – 97.90 remains strong Resistance (50% Fib since May) – PP 96.95
EUR – stalled at 1.1250 below PP. S1 at 1.1200 and PP at 1.1270
JPY – fell to 170.20 area, ranging at PP 107.16 as it regained its safe-haven status – Resistance at 107.60-107.75.
GBP – down, below 20-DMA. Currently at S1: 1.2460 – GBP is known as pandemic-era sensitivity to risk-off conditions
AUD – break’s 0.68 barrier. Currently below S1 at 0.6785. PP at 0.6857
CAD – 1.3675 (20-DMA) !R1 at 1.3735 and PP at 1.3590
BITCOIN – free fall?? – turned below 9000 – increased selling activity in Asia session
GOLD – extended lower at 1720 sustained a move above 200-DMA thought.
TODAY: UK – EU talks, Eurozone trade numbers, and final Italian inflation data.
GBPUSD (DOWN by 0.65%). The pair dropped to the mid 1.24 area on the strong dollar and as the cautious sentiment holds ahead of UK – EU talks today. The fast MA’s aligned southwards, as momentum indicators are negatively configured. RSI hit 30 barriers and MACD extending further to the downside as fast Stochastic crossed bearishly. The overall sentiment turned negative. ATR for H1 at 0.24 and Daily ATR at 0.0127
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