Gold Breaks Above 1,500, GPUSD Under Pressure

Asian equity indices ended mixed today after the ECB left interest rates unchanged as expected and while investors await that the Fed will cut interest rates by 25 bps next week.

Investors increased their bets the Fed will cut interest rates by 25 bp at its next meeting on October to protect the economy from slowing growth and the effects of the trade tensions.

Investor’s sentiment got a boost after President Trump lifted sanctions on Turkey saying a ceasefire in northern Syria was now permanent. The Hang Seng index is 0.49% lower at 26,667. The Shanghai Composite is 0.48% higher at 2,954 while in Singapore, the FTSE Straits Times is 0.53% higher at 3,185. The ASX 200 in Australia is 0.68% higher at 6,739.

European indices started the day lower with 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 0.04 per cent lower at $56.19 as global growth worries weigh on crude. Brent oil is trading 0.02% lower at $61,41 per barrel as oil world supply will be affected by the global slowdown. Gold trades higher at 1,504, 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.       

In cryptocurrencies, Bitcoin (BTCUSD) momentum is bearish despite it trades higher today at 7,582 close to five-month lows, hitting the daily low at 7,364 and the daily high at 7,623. Bitcoin short term momentum is bearish now as the cryptocurrency trades below all daily 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 8,801 recent high and then at 9,000 round figure. Ethereum (ETHUSD) trades higher at 163,58 with capitalisation now to 17.81 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 lower at 50.21. The crypto market cap capitalization has dropped down to $207.86 billion.

On the Lookout: Vice President Pence expressed hope for a phase-one trade deal and said the U.S. USA 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 0.04 per cent lower at 97.64, the Aussie dollar trades 0.07 per cent higher at 0.6823, while NZDUSD trades 0.37% lower at 0.6359.

GBPUSD Daily Chart

GBPUSD trades 0.17% lower at 1.2828 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 459 contracts, volume increased by around 7.700 contracts.

EURUSD trades 0.08% higher at 1.1113 as the pair momentum is bullish. Immediate resistance for the pair stands at 1.1162 recent’s high. On the downside, immediate support stands at 1.11 today’s low and then at 1.1003 the previous week low.

In euro futures markets open interest decreased by 507 contracts, the volume increased by around 73.100 futures contracts.

USDJPY is trading 0.01% higher at 108.61 having hit the daily low at 108.55 and the daily high at 108.70. 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 109.06 the 200-day moving average.

In Yen futures markets open interest decreased by 1,700 contracts, volume decreased by around 6,400 futures contracts.

USDCAD is trading 0.03% lower at 1.3067 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.  

USDCAD Daily Chart