Daily Market Review — 04/07/2016
U.K. Construction PMI is today’s main event
The British currency is still under immense pressure, with most investors purchasing it carefully, still fearing the negative fallout of the Brexit. Interestingly, Friday’s data failed to sway the pair in any direction as both the Japanese and UK PMI’s beat expectations. Today, the pair will be influenced by the U.K. Construction PMI, scheduled for 8:30 GMT.
Resistance: 138.70, 141.75, 145.35
Support: 135.14, 132.61, 130.15
The pair trended slightly upward during Friday’s session, with the Chinese Manufacturing PMI providing key support. Positive trading circumstances in the commodity markets along with a USD fall additionally propped up the pair. So far the pair started this week with a sharp rise, aided heavily by better than expected Australian inflation data. Today’s trading dynamics will depend solely on the behavior of investors as the US celebrates Independence Day.
Resistance: 0.7509, 0.7555, 0.7595
Support: 0.7460, 0.7410, 0.7370
Major US stock indices rose during Friday’s session, as most indexes recovered all losses incurred as a result of the post-Brexit panic. A positive US Manufacturing PMI reading helped spur the recovery. Today, the US market is closed due to July 4.
Resistance: 17912.00, 17953.00, 18004.00
Support: 17830.00, 17759.00, 17689.00
Brent Oil Futures
Oil prices fell heavily thanks to the vast oversupply as production volumes recovered from the Alberta fire and the strikes in Nigeria. However, what really caused prices to fall was the number of active drills increasing to 11 units. However, the added expectation of certain central banks increasing their stimulus measures pushed up oil prices slightly. Today, a statement from the head of OPEC will impact the market.
Resistance: 51.00, 51.64, 52.20
Support: 49.93, 49.49, 48.90