Daily Market Review — 17/05/2016
UK & US CPI figures will be the main events
The British pound strengthened significantly against the euro yesterday primarily due to a lack of economic statistics in the Eurozone and today’s upcoming UK CPI figures. According to average forecasts, the CPI rose slightly in April. Meanwhile, today the results of a Brexit telephone poll were released, with about 55% wanting to remain in the EU, while 40% desiring to leave. These results bolstered support for the British currency. Today’s dynamics will heavily depend on today’s CPI publication scheduled for 8:30 GMT. Additionally, the monthly Budesbank report scheduled for 10:00 GMT should provide some further impact
Resistance: 0.7820, 0.7844, 0.7868
Support: 0.7783, 0.7756, 0.7728
Yesterday the pair showed an upwards trend thanks to Japanese Prime Minister Shinzo Abe’s statement. He indicated that direct intervention in the currency market is a possibility. Interestingly enough the USD/JPY wasn’t affected despite a worse than anticipated US N.Y. Empire state manufacturing index, indicating a reduction in activity a third month in a row. Today’s trading dynamics will ultimately depend on US CPI findings, scheduled for 12:30 GMT. Furthermore, investors should additionally pay attention to US Industrial Production at 13:15 GMT and the Japanese GDP report schedule for 23:50 GMT.
Resistance: 109.37, 110.20, 110.87
Support: 108.20, 107.46, 106.50
Main European stock posted moderate gains by the end of yesterday’s trading thanks to China pledging to support its national economy after disappointing data on industrial production and retail sales. Additionally, increases in oil prices provided further market support. Today’s dynamics will depend on this morning’s UK CPI data, scheduled for 8:30 GMT.
Resistance: 6142.06, 6161.37, 6180.05
Support: 6095.36, 6065.47, 6043.68
Precious metal quotes increased significantly yesterday after disappointing US NY Empire State Manufacturing Index data. It is worth noting that this figure fell for the third month in a row. However, during the second half of the day, gold prices fell on profit taking after a period of significant growth. Today investors should pay attention to US CPI data scheduled for 12:30 GMT.
Resistance: 1280.82, 1288.39, 1295.40
Support: 1271.58, 1265.35, 1258.56