Daily Market Review — 21/04/2016
Earnings reports from Google, Microsoft & Starbucks will be reported at after the U.S. markets close.
During yesterday’s trading session the pair dropped significantly, spurred on by purchases of the U.S. currency. It should be noted that this trend came about due to profit-taking on the pair after a superb three-day growth. Today investors should be aware of today’s ECB interest rate decision followed by a press conference. They are scheduled for 11:45 GMT and 12:30 GMT respectively. Most leading experts believe that no significant policy changes will be enacted. It should be noted that the ECB adopted a new stimulus package during last month’s meeting on the 10th of March. Additional impact on the currency pair may come at 12:30 GMT when the weekly U.S. unemployment claims will surface.
Resistance: 1.1300, 1.1330, 1.1355
Support: 1.1275, 1.1245, 1.1215
Yesterday, various differing economic statistics emanating from the U.K. yielded mixed results for the currency pair. Unemployment in the U.K. remained unchanged at 5.1%, but the claimant count change unexpectedly increased to 6700 as opposed to anticipated 11.9 k decline. Additionally, average earnings grew at a slower pace than what was expected. Today, the pair’s dynamic will depend on U.K. retail sales data, scheduled for 8:30 GMT. Most believe this report will prove to be better than expected, which should provide short-term support for the GBP against the major currencies.
Resistance: 158.10, 159.55, 160.85
Support: 155.75, 154.00, 151.90
General Motors (GM)
Earnings season continues in the United States. Yesterday, Coca-Cola’s report and the results severley disappointed investors. Today, before the U.S. markets open General Motors (NYSE: GM) will publish its quarterly report. According to forecasts, earnings per share should be $1.01 as opposed to $1.39 for the previous quarter. Quarterly revenue should only reach $35.75 billion as opposed to $39.62 billion in the previous quarter.
Resistance: 32.40, 32.80, 33.20
Support: 31.50, 30.95, 30.40
Crude Oil Futures
Crude oil prices rose significantly during yesterday’s trading session thanks to only a 2.08 million barrel rise in U.S. oil inventories. However, the report indicated that last week’s production volume fell again in the U.S., implying that there may soon be a decrease in demand on the global market.. Today’s dynamics will depend on investor sentiment, which will be dependent upon the USD.
Resistance: 45.00, 46.70, 48.10
Support: 43.60, 42.00, 40.80