In the foreign exchange market, after the dollar index rebounded to a maximum of 97.35 on the day, the bulls’ momentum weakened and closed at 96.57.
Boosted by the weakening of the US dollar, non-US currencies basically performed well. The euro/dollar recorded a rebound of more than 0.8% to 1.1324; the GBP/USD rebounded about 150 points from the lowest rebound to close at 1.2604; the USD/JPY range oscillated within a narrow range, reported at 107.32; NZD/USD and AUD/USD each recorded The gains of 1.46% and 2.10% rose to 0.6473 and 0.6918; USD/CAD fell back to 1.3566 under resistance; USD/CHF was under pressure and closed at 0.9490.
In the precious metals market, spot gold fell first and then rose to $1724.85 per ounce; spot silver closed moderately below $17.30 per ounce.
In the oil market, US crude oil bearish momentum slightly slowed and closed at US$36.96/barrel, an increase of 3.27% during the day.
Dollar index
(Source of the daily chart of the US Dollar Index: HotForex)
The daily chart shows that the dollar index is under pressure and is currently closing at 96.95 resistance. From the MACD’s point of view, the fast and slow lines are about to form a golden fork, and the green kinetic energy column shrinks moderately. The trend of the index and the change of the kinetic energy bar are divided.
EUR/ USD
(Source of EUR/USD daily chart: HotForex)
The daily chart shows that the euro has rebounded against the dollar and is currently closing at a previous high of 1.1280. From the MACD perspective, the fast and slow lines want to form a dead fork, and the red kinetic energy bar continues to converge. Exchange rate movements and changes in the kinetic energy bar are divergent.
GBP/ USD
(Source of GBP/USD daily chart: HotForex)
The daily chart shows that the British pound has stabilized and strengthened against the US dollar, currently closing at 1.2520 support. From the MACD perspective, the fast and slow lines are about to form a dead fork, and the red kinetic energy column continues to shrink. Exchange rate movements and changes in the kinetic energy bar are divergent.
USD/ JPY
(Source of USD/JPY daily chart: HotForex)
The daily chart shows that the USD/JPY basically held steady at 106.85 support. From the MACD perspective, the fast and slow lines are expanding downwards, and the green kinetic energy column is increasing moderately. Exchange rate movements and changes in the kinetic energy bar are slightly different.
AUD/ USD
(Source of AUD/USD daily chart: HotForex)
The daily chart shows that the Australian dollar has stabilized and rebounded against the US dollar, currently closing slightly at the previous high of 0.6900. From the MACD point of view, the fast and slow lines are still dead, and the green kinetic energy column is increasing moderately. Exchange rate movements and changes in the kinetic energy bar are divergent.
NZD/ USD
(NZD/USD daily chart source: HotForex)
The daily chart shows that the New Zealand dollar rebounded higher against the US dollar and is currently closing at 0.6440 support. From the MACD point of view, the fast and slow lines form a dead fork, and the red kinetic energy column shrinks. Exchange rate movements and changes in the kinetic energy bar are divergent.
USD/ CAD
(Source of USD/CAD daily chart: HotForex)
The daily chart shows that the US dollar fell against the Canadian dollar, and it is currently closing at 1.3670 resistance. From the MACD point of view, the fast and slow lines form a golden fork and the red kinetic energy column is moderately heavy. Exchange rate movements and changes in the kinetic energy bar are divergent.
USD/ CHF
(USD/CHF daily chart source: HotForex)
The daily chart shows that the USD/CHF is under pressure and is currently closed at 0.9540 resistance. From the perspective of MACD, the fast and slow lines are slightly narrowed, and the green kinetic energy column moderately converges. The exchange rate movement and the change of the kinetic energy bar are slightly different.
gold
(Source of Gold Daily Chart: HotForex)
The daily chart shows that the price of gold first fell and then rose, currently closing at 1703.00 support. From the MACD point of view, the fast and slow lines form a golden fork, and the red kinetic energy column increases moderately. The trend of gold price is basically consistent with the change of kinetic energy bar.
silver
(Source of Silver Daily Chart: HotForex)
The daily chart shows that the silver price fluctuated downwards, and it is still testing the 17.30 support and the channel trend line support. From the MACD perspective, the fast and slow lines are running downwards, and the green kinetic energy column is moderately heavy. The silver price trend is basically consistent with the change of the kinetic energy bar.
US crude oil
(Source of US crude oil daily chart: HotForex)
The daily chart shows that US crude oil closed moderately above the 34.90 range support. From the MACD point of view, the fast and slow lines are still dead, and the green kinetic energy column is increasing moderately. The trend of oil price and the change of kinetic energy column are slightly different.
Recent key events:
The Fed announced the launch of two heavyweight initiatives, advocating support for companies and non-profit institutions.
Yesterday, the Federal Reserve announced the addition of new features to its secondary market enterprise credit facility (SMCCF) to continue to support market operations and relax credit conditions. This plan expands the scope of the Fed’s purchase of corporate credit and has the ability to purchase corporate credit worth up to $750 billion.
In addition, the Fed also announced for the first time that it would start buying single corporate bonds with a remaining maturity of five years or less on the secondary market to “create a corporate bond portfolio based on a broad and diversified index of U.S. corporate bond markets.” According to the Fed, the bonds issued by these US companies on the secondary market will form this index, provided that these bonds must meet the required minimum ratings, maximum maturity, and other criteria. This indexing approach will complement this credit instrument’s current plan to buy exchange-traded funds, which favor investment-grade indexes and some “junk bond” funds that track debt.
On the other hand, the Fed also said it would expand the main street loan plan, and keep the relevant interest rates, deferred principal and interest payments, and five-year loan forms in line with commercial loans. Non-profit institutions will benefit from the plan. However, the program also sets out the application conditions, including that the non-profit organization must have been established for at least five years, employ at least 15,000 to 500,000 employees, the total donation in the past did not exceed US$ 3 billion, and the loan size was set at US$ 250,000 to Between 300 million US dollars.
Daytime Macro focus:
Federal Reserve Chairman Powell issued a semi-annual monetary policy report on the Senate Banking Committee.
At 14:00 GMT time, Fed Chairman Powell will attend the Senate Finance Committee video hearing to testify on the Fed’s semi-annual monetary policy report. The market basically expects Powell to continue to emphasize the view that he will maintain near zero interest rates for a period of time, and he may also issue warning messages about the US economy and epidemic situation.
Larince Zhang
Market Analyst
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