Daily Market Review — 03/03/2016
U.K., Eurozone and US Services PMIs will be the main events today
At yesterday’s session British currency strengthened significantly against the US dollar due to investors’ rising risk appetite. Such dynamics was caused, primarily, by recovery of oil prices. U.K. Construction PMI, which recorded a decline, put some pressure. However, data on U.S. ADP nonfarm employment change were impressive. Thus, according to the presented data, the number of employees has increased to a level of 214,000 in the current month against the average forecast of experts at the level of 190 thousand. Today, U.K. services PMI (09:30 (GMT)) will provide a significant impact on the pair’s dynamics. Let us remind that about two-thirds of British GDP came from the services sector. Also, data on the US labor market, which will be presented at 13:30 (GMT) will be in focus of market participants. Moreover, at 15:00 (GMT) will be published U.S. ISM Non-Manufacturing Business Activity and US factory orders. Meanwhile, market participants wait for NFP report, which will be presented tomorrow at 13:30 (GMT).
Resistance: 1.4166, 1.4256, 1.4380
Support: 1.4023, 1.3921, 1.3839
During yesterday’s trading day the pair was in a downward trend. This was primarily due to the weak statistics on the producer price index in the Eurozone, which was negative. In addition, in the second half of the trading day, there was an increased demand for the Japanese currency as a safe asset in the background of falling stock markets. Today data on service PMIs from France, Germany and the Eurozone will provide significant impact. Also, at 10:00 (GMT) will be presented data on Eurozone retail sales.
Resistance: 124.33, 125.03, 126.09
Support: 123.06, 122.07, 120.84
Major European stock indexes showed mixed trends yesterday, however, there was a symbolic growth. This trend was caused by the expectation of expanding stimulus measures by central banks. In addition, some support for stock markets provided ECB President Mario Draghi’s statement, who noted that at the next meeting European regulator will review measures to support the region’s economy. Some pressure put data on producer prices, which pointed to a steady drop in inflation in the euro area. Today, the investors will pay attention to China Caixin services PMI, which was published this morning. Some influence may provide data on retail sales in the Eurozone 10:00 (GMT).
Resistance: 9842.40, 9920.66, 10042.83
Support: 9687.51, 9583.60, 9481.65
At yesterday’s session prices for precious metals showed growth because investors tried to avoid the risks. Increased demand for gold provoked a drop in stock markets around the world, despite the impressive data on the US labor market. Some support to the gold market provided falling oil prices after the publication of record increase of oil stocks. Today, the dynamics of trade may be affected by the publication of U.S. continuing jobless claims at 13:30 (GMT). Also, at 15:00 (GMT) will be feature data on U.S. ISM non-manufacturing business activity and industrial orders. Meanwhile, the main report, which could have a strong impact on will be certainly the NFP report, it will be published tomorrow at 13:30 (GMT).
Resistance: 1245.42, 1252.93, 1263.14
Support: 1232.13, 1216.80, 1206.79