Daily Market Review — 02/06/2016
ECB Press Conference will be today’s main event
The pair rose slightly yesterday due to profit taking after the Tuesday’s fall along with better than anticipated data on manufacturing PMI in France, Germany and the Eurozone. Today’s upcoming ECB decision pertaining to the interest rates, scheduled for 11:45 GMT will have a major impact on the pair’s dynamics. According to most analysts, the ECB will not make any important changes in monetary policy. Additionally, traders should pay attention to ECB President Mario Draghi’s speech, scheduled for 12:30 GMT. Furthermore, US ADP Non-Farm Employment Change will be released today at 12:15 GMT.
Resistance: 1.1242, 1.1290, 1.1340
Support: 1.1170, 1.1116, 1.1073
The GBP fell moderately against its US counterpart, with the results of the latest Brexit poll being the main catalyst. The data indicated the number of Brexit supporters now exceeds those who are against it. Additionally, data on the UK’s Manufacturing PMI further impacted the pair. Today’s trading dynamics will depend on the results of the UK Construction PMI 8:30 GMT and US labor market data.
Resistance: 1.4479, 1.4524, 1.4566
Support: 1.4389, 1.4338, 1.4296
The company’s product line will expand this summer with another drink – Nitro Coffee, a drink that Starbucks believe will be in high demand. This innovation will be presented in seven major US cities, with the mega coffeehouse chain expecting significant revenue growth from it. Regarding its Q1 performance, its EPS was $0.39, corresponding to leading estimates. As for its total revenue, it was $4.99 billion as opposed to the expected $5.04 billion forecast. Currently, the stock is listed at 54.82, down 0.13%. It has been engulfed in a downwards plunge for almost the last month and a half.
Resistance: 55.40, 55.90, 56.41
Support: 54.59, 54.17, 53.58
Crude Oil Futures
Crude oil prices fell slightly as investors are waiting for today’s OPEC meeting. Most experts though do not expect any drastic measures from this meeting. If anything more output will arise as OPEC member countries are still fighting for their market share. Meanwhile, data on oil stocks impacted the market yesterday, as 2.35 million were recorded as opposed to an expected 3.1 million reduction. Today at 15:00 GMT the US Department of Energy will present its weekly report.
Resistance: 49.24, 50.00, 51.31
Support: 48.14, 47.22, 46.29