Daily Market Review — 03/02/2016

Daily Market Review — 03/02/2016

Eurozone Retail Sales and U.S. ADP National Employment Report will be the main events today




During yesterday’s trading day the European currency strengthened against the British pound, due to the positive statistics on the Eurozone economy. Thus, the unemployment rate in Germany in January fell to 6.2% against the average forecast of experts at the level of 6.3%. Eurozone Unemployment Rate fell to 10.4% vs. 10.5% expected. However, U.K. Construction PMI was slightly below the average forecast of analysts – 55 against an average forecast of 55.7. Today, the market participants will pay their attention to data on U.K. Services PMI, which will be published at 09:30 (GMT). It is worth noting that this figure is very important for the British economy as the services sector accounts for around two-thirds of British GDP. Also, pay attention to the publication of Eurozone Retail Sales, which will be presented at 10:00 (GMT).

Resistance: 0.7616, 0.7648, 0.7693
Support: 0.7559, 0.7524, 0.7482



During yesterday’s trading day the pair showed mixed trends, due to negative data on U.K. Construction PMI, which was slightly below the average forecasts of experts. However, the figure was above the level of 50. Some support the British currency yesterday provided report that United Kingdom and European Union agreed part of the plan that UK will stay a member of the bloc. Today, the dynamics can be influenced by the publication of U.K. Services PMI in the 09:30 (GMT). Also, the market participants will pay their attention to U.S. ADP National Employment Report, which will be published at 13:15 (GMT). In addition, today will be published U.S. Markit Composite PMI at 14:45 (GMT) and the U.S. ISM Non-Manufacturing Business Activity at 15:00 (GMT). Meanwhile, market participants will be looking forward to the most important report of the month – NFP, which traditionally will be presented on Friday.

Resistance: 1.4443, 1.4506, 1.4559
Support: 1.4367, 1.4309, 1.4227


Stock Market

S&P500 Futures


Major US stock markets showed a negative trend yesterday, which was caused by the resumption of burning oil prices. This leads to a drop in value of the shares of energy and mining companies. In addition, U.S. ISM – NY Business Conditions fell unexpectedly this month, pointing to negative trends in the economy of the region. Meanwhile, quarterly statements also were important. The current dynamics of the US stock exchanges will depend entirely on investor sentiment. Also, the dynamics of trade can be influenced by the publication of U.S. ADP Nonfarm Employment Change and U.S. Services PMI, which will be presented during the day. It is worth noting that investors will switch their attention to a government report NFP, which will be published this Friday.

Resistance: 1907,57, 1927,01, 1946,13
Support: 1884,67, 1865,10, 1848,93



Light Sweet Crude Oil Futures


Yesterday, the quotes of the “black gold” fell below the level of $30 per barrel again. This was due to the fact that investors didn’t expect Russia and the OPEC to reach an agreement on the reduction of production, which could help stabilize oil prices. Meanwhile, The American Petroleum Institute reported yesterday that inventory levels of US crude oil rose by 3.84 million barrels last week (forecast 4.8 million). However, investors’ attention will be on the U.S. Crude Oil Inventories, the US Department of Energy will publish it at 15:30 (GMT). Most likely the report will show a growth, which can further press on the oil quotes.

Resistance: 30.18, 31.71, 33.30
Support: 29.38, 27.84, 27.00

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