Daily Market Review — 01/12/2015
Main Reports of the Day – Swiss and Canadian GDP
The pair showed a negative trend yesterday, which was caused by several negative United States statistic reports. According to yesterday’s released data, the Chicago Purchasing Managers’ Index was only 48.7 against an average forecast of 54. In addition, the Pending Home Sales Index grew by only 0.2% against expectations of 1.5%. Therefore, some market participants chose to close long positions on the US Dollar, which led the USD/CHF to the south. Despite this, US currency traded near its highs on expectations of a rate hike by the US Federal Reserve at its next meeting. Nevertheless, market participants are looking forward to the report on the NFP, which will be published this Friday. Today’s dynamics of the pair may be affected by the GDP data for the third quarter of Switzerland, which is scheduled for 06:45 (GMT), as well as Swiss Retail Sales at 08:15 (GMT). As to the American Economic statistics, market participants will be watching the ISM Manufacturing Index at 15:00 (GMT).
Resistance: 1.0326, 1.0394, 1.0495
Support: 1.0252, 1.0216, 1.0120
The Canadian currency lost position in the USD/CAD pair during trading yesterday. This was caused by negative statistics on the US Economy. In particular, the Chicago Purchasing Managers’ Index could not reach the level of 50 that separates expansion of the sector from the problems in it. In addition, quotations of oil, which heavily influence the Canadian dollar showed some growth yesterday. Today, the focus of market participants will be on Canadian GDP data for the third quarter, which is scheduled for 13:30 (GMT). One should also pay attention to US data, which will be published at 15:00 (GMT).
Resistance: 1.3362, 1.3390, 1.3435
Support: 1.3324, 1.3282, 1.3245
Major US stock indexes showed a negative trend yesterday and closed the session in the red territory. Investors are preparing for a week of important Economic statistics. The most important news this week will certainly be the NFP report. It will be published on the eve of the US Federal Reserve’s meeting, when; presumably, the US regulator will raise key interest rates. Meanwhile, Investors also expect the ECB meeting on December 3, where the expansion of stimulus measures may be announced. Yesterday, the US Stock Markets were pressured by some negative data, like the Chicago Purchasing Managers’ Index, which fell short of the forecast. Today’s trading dynamics will be affected by the US data on the ISM Manufacturing Index, scheduled for 15:00 (GMT).
Resistance: 17839.28, 17900.77, 17972.18
Support: 17763.70, 17689.40, 17621.51
Light Sweet Crude Oil Futures
“Black Gold” quotes are showing a positive trend before the OPEC members meeting, scheduled for 4th December. Despite the fact that observers don’t expect any changes in the current policy to arise from this meeting, it’s important in terms of the future prospects of the global oil market. This situation will generate some support for prices on “Black Gold”, but on the other hand, concerns about oversupply in the world market prevent further growth. This week the NFP report is to be released, which will partly determine what further steps the US Federal Reserve will take. In the case of a rate hike, oil prices will experience pressure against the strengthening of the US currency. Meanwhile, today’s trading dynamics may be influenced by the publication of data on the US Crude Oil Stocks at 21:35 (GMT).
Resistance: 42.56, 43.42, 44.04
Support: 41.50, 40.35, 39.50