Daily Market Review — 04/11/2015
Janet Yellen’s Speech (the Fed’s Chairwoman) Is the Highlight of the Day
After mixed trading on Monday, in yesterday’s session the pair was in a downtrend. Despite the negative data on Factory Orders in the US economy, which fell short of the predicted values, the European single currency came under renewed pressure given the expectations from ECB’s President Mario Draghi speech. Market participants correctly predicted the commitment of the European Central Bank’s head to ease its monetary policy. During his speech, Mr. Draghi assured that the regulator is ready to use all available means to hit its inflation target. This implies, in particular, the expansion of the quantitative easing program, which acts as a downward factor for the Euro. Today’s trading of the EUR/USD can potentially be affected by a lot of news, the most important of which are the data on the US labor market, which is scheduled for 13:15 (GMT), as well as the speech of the Fed’s Chairwoman Janet Yellen at 15:00 (GMT).
Resistance: 1.0996, 1.1074, 1.1131
Support: 1.0897, 1.0819, 1.0712
The pair continued its growth for the fourth consecutive session. Bulls had a renewed reason for optimism yesterday given the central bank’s decision to leave its interest rate unchanged. Today’s released data on Retail Sales in Australia came out in accordance with the predicted values. The Trade Balance however indicated the reduction of the deficit. Besides that, the Markit/Caixin Services PMI came out in China and it was higher than analysts’ forecast, but more importanly above the level of 50, indicating a rapid growth for this sector of the Chinese economy. China is Australia’s largest trading partner and therefore the exchange rate of the national currency depends heavily on the health of the Chinese economy. Moving on, today’s trading of the AUD/USD will likely be affected by the data on the US labor market, which will be published at 13:15 (GMT). In particular, the attention of the markets will be focused on the speech of Fed’s Chairwoman, Janet Yellen, at 15:00 (GMT). Meanwhile, markets are preparing for Friday’s NFP report, which may shed some light on the possibility of a rate hike in December, this year.
Resistance: 0.7241, 0.7294, 0.7343
Support: 0.7181, 0.7151, 0.7110
European stock markets rose slightly against the background of a good performance of energy companies. Yesterday’s trading was influenced by data on the Construction PMI, which came out exactly as forecast. In addition, traders received support from ECB’s President Mario Draghi speech, who pointed to the possibility of expanding the quantitative easing program, a boon for the stock markets. Today’s dynamics of trading can be significantly affected by the speech of Fed’s Chairwoman Janet Yellen, scheduled for 15:00 (GMT). Meanwhile, market participants are preparing for the US NFP report, scheduled for Friday.
Resistance: 6386.75, 6421.87, 6466.41
Support: 6308.54, 6249.36, 6210.94
Quotes of the precious metal fell significantly in yesterday’s trading, mainly due to the strengthening of the US dollar and the ongoing analysis of the Fed’s recent statements about the possibility of a rate hike in December. The US data on Factory Orders, which fell more than predicted by observers, also had some limited impact. Today’s dynamics of trading can be influenced by the publication of data on the US labor market at 13:15 (GMT) and the speech of the Fed Chairwoman Ms. Yellen at 15:00 (GMT). It is worth noting that the markets are preparing for Friday’s NFP report, which indicates the current state of the US labor market. This data is closely watched by the Fed as a reference point for decision-making on monetary policy.
Resistance: 1122.62, 1132.45, 1144.42
Support: 1114.10, 1104.70, 1098.44