Market Review 18 June 2020

by Constantinos Loizou

  • In the Economic calendar of today we can expect some volatility in CHF, GBP and USD
  • At 07:30 (GMT) the Swiss National Bank will announce their Interest rate decision
  • The result is forecasted to remain the same as the previous quarter at -0.75%
  • At 11:00 (GMT) the Bank of England will announce their Interest rate decision
  • The result is forecasted to remain the same as the previous month at 0.1%
  • Also, at 11:00 (GMT) the Bank of England will release their Asset Purchase Facility
  • The above, is the value of money the Bank of England plans to create and inject into the economy through open market bond purchases to influence long-term interest rates
  • The result is forecasted to increase to 745B considering the last month that was at 645B
  • At 12:30 (GMT) the US Department of Labor will release their Initial Jobless Claims
  • The above is a measure of the number of people filing first-time claims for state unemployment insurance
  • The result is forecasted to decrease to 1300K considering the last month that was at 1542K

 

On the charts

 

  • As we can observe on the GBP/CHF daily chart, the price has broken below the blue upward trendline
  • The price returned and retested the trendline and reacted to the downside
  • The price is now at 1.19107 below the 20 days Moving Average (purple)
  • In the momentum indicator we can observe that is heading to the downside below its previous support, indicating bearish attitude
  • Considering the above, we may see the price moving lower to 1.17200, a price level which consists an inside support level
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