Brexit Vote

Asian Equities Higher, Bitcoin Higher at 9,400

Asian equity indices ended higher during the first trading session of the day as traders increased their bets that the Fed will cut interest rates by 25 bps at its next meeting later this week to protect the economy from slowing growth and the effects of the trade tensions. Markets are pricing a 93.5% chance of a 25 bps interest rate cut to a 1.50%-1.75% range from the current 1.75%-2%.

On the Brexit front, the European Union agreed to UK’s request for a Brexit deadline extension but set no new departure date. The Hang Seng index is 0.96% higher at 26,927. The Shanghai Composite is 0.65% higher at 2,974. The ASX 200 in Australia is 0.68% higher at 6,739.

European indices started the day lower DAX trading 0.22% lower at 12,843. CAC40 is 0.02 per cent lower at 5,683 while the FTSE MIB in Milan is 0.19 per cent lower at 22,484. In London, FTSE 100 is trading 0.55% lower at 7,287. The United Kingdom is scheduled to leave the EU on October 31.

In commodities markets, WTI crude oil trades 0.23 per cent lower at $56.53 as global growth worries weigh on crude. Brent oil is trading 0.24% lower at $61,58 per barrel as oil world supply will be affected by the global slowdown. Gold trades higher at 1,505, as the short term momentum turns positive after the price trades above the 50-day moving average. On the upside, strong resistance stands at 1,555.13 yearly high while support is at 1,458 the recent low.    

25 bps
BTCUSD Daily Chart

In cryptocurrencies, Bitcoin (BTCUSD) momentum is bullish, the cryptocurrency trades higher today at 9,572 close to monthly high, hitting the daily low at 9,418 and the daily high at 9,925. Bitcoin short term momentum is bullish now as the cryptocurrency trades above the 50 and 100-day moving averages. Immediate support for BTC stands now at $7,364 recent low, while the next support stands at 7,300 round figure. On the upside, resistance now stands at 9,925 recent high and then at 10,000 round figure. Ethereum (ETHUSD) trades higher at 182,82 with capitalisation now to 19.93 billion, on the upside, the immediate resistance stands at 200 recent high while the support stands at 136 the low from May 6th, LTCUSD trades higher at 58.54. The crypto market cap capitalization now stands at $253.7 billion.

On the Lookout: Vice President Pence expressed hope for a phase-one trade deal and said the U.S. would continue the talks in good faith with China. Pence also criticised China’s actions to curb civil rights in Hong Kong and mainland China.

The central bank of China set the Yuan rate (USDCNH) at 7.0749 versus yesterday settlement at 7.0727.  

Trading Perspective: In forex markets, USD index trades 0.01 per cent lower at 97.82, the AUDUSD trades 0.09 per cent lower at 0.68143, while NZDUSD trades 0.02% lower at 0.6346.

25 bps
AUDUSD Daily Chart

GBPUSD trades 0.04% higher at 1.2827 as we are getting closer to the Brexit deadline. Major support now stands at 1.2078 recent low which if broken, might accelerate the slide further towards 1.20. On the upside, immediate resistance now stands at 1.3010 recent high while more offers will emerge at 1.3050 round figure.

In Sterling futures markets open interest decreased by 10,800 contracts, volume decreased by around 33.400 contracts.

EURUSD trades 0.10% higher at 1.1089 as the pair momentum is bullish. Immediate resistance for the pair stands at 1.1162 recent high. On the downside, immediate support stands at 1.1075 today’s low and then at 1.1003 the previous week low.

In euro futures markets open interest increased by 2.600 contracts, the volume decreased by around 72.500 futures contracts.

USDJPY is trading 0.07% higher at 108.73 having hit the daily low at 108.67 and the daily high at 108.78. USDJPY pair will find support at 104.44 the low from August 23rd. On the upside, immediate resistance for the pair now stands at 108.93 recent high, and then at 109.05 the 200-day moving average.

In Yen futures markets open interest increased by 369 contracts, volume decreased by around 6,600 futures contracts.

USDCAD is trading 0.15% lower at 1.3074 the pair will find immediate support at 1.3017 the YTD low while extra support stands at 1.30 round figure. On the upside, immediate resistance now stands at the 1.3356 high from September 3rd before an attempt to 1.3450 high from 31st May.