Daily Market Review — 02/12/2015
Main Event of the Day – Consumer Price Index in the Eurozone
The pair was trading a positive trend yesterday. This was caused by caution of market participants due to the upcoming important events later this week, such as the ECB meeting and Friday’s report on the NFP. On the other hand, a depreciation of the US currency was caused by negative data on the US Economy and positive data for the Eurozone. Thus, according to yesterday’s released data, the German Manufacturing PMI showed strong growth. The data on labor market also came out positive. In addition, the Unemployment Rate in the Eurozone unexpectedly fell to 10.7% compared to the expected level of 10.8%. As for the US Economy, the strengthening of the national currency, and international financial crises have put pressure on the ISM Manufacturing Index in the US; which fell to 48.6, indicating a contraction in this sector of the Economy. Today, the EUR/USD will be heavily influenced by data on consumer and producer prices in the Eurozone, scheduled for 10:00 (GMT). This report will be very important in the light of the upcoming ECB meeting on 3rd December.
Resistance: 1.0638, 1.0690, 1.0762
Support: 1.0566, 1.0518, 1.0464
Yesterday the AUD/USD spent most of the day at an upward trend. The Reserve Bank of Australia left the parameters of its monetary policy unchanged. In the accompanying statement, however, Investors found some hints pointing to a possibility of cutting interest rates, if necessary. With that, the Australian regulator pointed out that the region’s Economy is growing at a moderate pace, despite the fact that the national currency is overpriced. Data was released this morning about Australia’s GDP, which turned out to be quite impressive. It grew by 0.9% q/q against the forecast of 0.7% and by 2.55% y/y vs. 2.3%. Today’s pair dynamics may be affected by US data on changes in the number of employees from ADP at 13:15 (GMT). Pay particular attention to US Federal Reserve Chairwoman Janet Yellen’s statement at 17:25 (GMT). Meanwhile, market participants are cautious of opening new positions ahead of the publication of a government NFP report on Friday.
Resistance: 0.7341, 0.7380, 0.7425
Support: 0.7280, 0.7248, 0.7209
The major Stock Indexes in Europe showed mixed trends yesterday. They left multi-day highs on expectations of an announcement of the result of the ECB meeting, scheduled for 3rd December. Yesterday’s trading was influenced by the dynamic data on manufacturing activity in Germany and the Eurozone, which were better than forecast. At the same time, it is worth noting that manufacturers have reduced prices, which is a signal for the ECB to extend stimulus measures. The Unemployment Rate, both in Germany and the Eurozone declined, indicating labor market recovery in the region. Meanwhile, the pressure on the Stock Markets came from disappointing statistics on the ISM Manufacturing Index in the United States, which came out at 48.6 against the average forecast at 50.4. The level below 50 indicates the sector is experiencing contraction. Today’s trading dynamics may be influenced by data on inflation in the Eurozone at 10:00 (GMT). Market participants should also focus their attention on Fed’s Janet Yellen’s speech, scheduled for 17:25 (GMT).
Resistance: 11365.39, 11452.69, 11519.04
Support: 11232.59, 11150.73, 11056.13
Prices for this precious metal rose significantly at the beginning of yesterday’s trading session, caused by the weakening of the US dollar and the closure of short positions. However, Gold has not been able to hold its positions on the back of expectations of the publication of a major report on the NFP before the US Federal Reserve’s meeting. Over the past month the precious metal has lost about 7% against the background of expectations of imminent monetary tightening by the Fed. Today, Investors will closely follow the report on the change in the number of employees from ADP which, together with a report on the NFP, may provide guidance on the timing of a rate hike in the United States. Yesterday’s trading was influenced by data on the ISM Manufacturing Index, which pointed out some problems in the industry. Meanwhile, investors will closely monitor Janet Yellen’s speech at 17:25 (GMT) today.
Resistance: 1074.55, 1085.21, 1097.90
Support: 1063.52, 1052.31, 1044.76