(15 April 2020)DAILY MARKET BRIEF 1:EURUSD is ready to take out the 1.10 resistance.

COMEX gold soared to $1788 an ounce on Tuesday. The strengthening positive momentum hints that a further rise toward the $1800 could be a piece of cake in case of a sudden downturn in global risk appetite.

The US dollar is under the pressure of the ballooning Federal Reserve (Fed) balance sheet.

Due today, the data may confirm a 4.8% slump in US core retail sales in March, as the industrial production may have tumbled 4% m-o-m during the same month.

Softening US dollar gives a certain boost to the euro and the pound, which are preparing to test two-week highs against the greenback, though halfheartedly, given that discussions of an extended period of lockdown on both sides of the Channel increase uncertainties regarding the activity slump, especially in heavily service-led economies.

Technically, the EURUSD is ready to take out the 1.10 resistance. Stops above this level could give an additional positive spin to the single currency and encourage a further rise towards at the 200-day moving average (1.1032). But offers will likely enter the game near this level.

Cable on the other hand could extend gains toward its 200-day moving average (1.2720), but the pair will likely bump into decent offers within the 1.27/1.30 range, given that the service-heavy British economy will likely suffer heavy losses following the coronavirus-led lockdown, as hefty job, hence revenue losses could prevent consumers from hitting the shops and restaurants when they open again, and leave weakened businesses faced with a prolonged period of anemic demand.

Else, the Bank of Canada (BoC) will likely maintain its policy rate unchanged at 0.25%. The USDCAD could return above the 1.40 mark, encouraged by low oil prices.