Daily Market Review — 02/03/2016
U.S. ADP Nonfarm Employment Change will be the main event today
At yesterday’s session the pair showed mixed trends, at the end of trading day US dollar showed positive dynamics against euro. This was due to weak Eurozone economy statistics and US statistics were vice versa positive. Thus, according to data presented yesterday, the unemployment rate in Germany remained unchanged at 6.2%, while in the Eurozone in January, unemployment unexpectedly dropped to 10.3% versus expectations of experts at the level of 1.04%. US data showed the index of business activity in the US manufacturing sector grew more than forecasts of experts, and the U.S. ISM Manufacturing PMI fell less than it was predicted. Today, the dynamics of the pair will depend on Eurozone producer prices index that will be published at 10:00 (GMT). However, the main event today will be the publication of U.S. ADP Nonfarm Employment Change at 13:15 (GMT). Meanwhile, the market is preparing for Friday’s NFP data.
Resistance: 1.0906, 1.0959, 1.1003
Support: 1.0833, 1.0800, 1.0766
Yesterday, the Swiss franc strengthened somewhat against the US dollar, aided by positive statistics on the Swiss economy. Thus, retail sales in January showed a slight decline in monthly terms, and in yoy terms vice versa showed an increase. Meanwhile, the manufacturing index rose to the level of 51.6 against expectations of experts at the level of 49.6. Of course, some impact on the dynamics of trade provided US data on manufacturing activity, which came out better than the average forecast of experts. Today the attention of market participants will be focused on the publication of U.S. ADP nonfarm employment change. This is the first report on the US labor market before the publication of a government report NFP, which is traditionally will be presented this Friday.
Resistance: 1.0001, 1.0037, 1.0080
Support: 0.9953, 0.9896, 0.9851
Major US stock indexes yesterday gained about 2%, helped by expectations that central banks will do one more step on the way to stimulate the economy after the publication of a series of disappointing data on manufacturing activity. China Manufacturing PMI was below the level of 50 for the seventh time in a row. A similar report on the US economy, was a bit better, but pointed to some slowdown in activity in this sector of the economy. However, investors wait for NFP report, which will be published this Friday. Today, the dynamics of trades can be influenced by another report on the US labor market – ADP nonfarm employment change at 13:15 (GMT).
Resistance: 17016.22, 17146.07, 17302.66
Support: 16804.28, 16707.29, 16628.34
Light Sweet Crude Oil Futures
Quotations of “black gold” at yesterday’s session rose slightly despite weak data on manufacturing activity in China. Support for oil market provides the speculation on the fact that the Chinese authorities will take new measures to support the national economy. Some influence provided the publication of the US API crude oil stock (they grew by 9.9 million barrels versus an average forecast of growth of 7.1 million). Today, investors will pay attention to similar report from the US Department of Energy at 15:30 (GMT).
Resistance: 34.63, 35.37, 35.97
Support: 33.78, 32.72, 31.46