Daily Market Review – 05/01/2015

Daily Market Review – 05/01/2015

Main Event Today – Publication of Eurozone Inflation Rate

Forex

EUR/USD

EURUSD

The pair showed mixed trends yesterday. During the first half of the day they rose due to tensions in the Middle East, as investors used the Euro as a funding currency. However, by the afternoon the dynamics of the pair changed.  The data on the index of business activity in the US manufacturing and construction sector spending was negative, but the Euro began to fall after its earlier rise to glory. This was in part caused by the negative report on Germany’s inflation. Thus, according to presented data, consumer prices in December fell by 0.1% against expectations of growth of 0.2%. In annual terms, prices have risen by 0.3% against the average forecast of experts which were at a level of 0.6%. Today’s dynamics may be affected by the publication of data on the labor market in Germany, which will be published at 08:55 (GMT). Also, market participants should pay attention to the inflation report on the Eurozone, to be be presented 10:00 (GMT).

Resistance: 1,0869, 1,0898, 1,0945
Support:: 1,0780, 1,0691, 1,0638

USD/CAD

USDCAD

US currency strengthened significantly yesterday against the Canadian dollar. Such dynamics were caused by the fall of any and all commodity currencies because of negative statistics from China. The situation in the Middle East, where the conflict between Iran and Saudi Arabia is growing steadily worse, also had influence on the situation. Oil quotations rose because of concerns about supply disruptions of raw materials, and this increase provide temporary support to the Canadian currency. Despite this, the US dollar was supported by statements by the Fed’s John Williams, who said that this year he expects 3 to 5 a rate hikes, depending on the state of the US Economy. Also, he added that the impulse received in 2015 will be maintained over the current year. Today’s dynamics may be affected by the data on the producer price index in Canada, scheduled for 13:30 (GMT).

Resistance: 1,3939, 1,4000, 1,4076
Support:: 1,3864, 1,3813, 1,3741

Stock Market

FTSE Futures

FTSE

Yesterday, major Stock Indexes in Europe came under severe pressure after the Chinese Stock Market fell. This was caused by the publication of weak data on manufacturing activity and led to fears that the slowdown of the Chinese economy may hinder the growth of the global economy. There was one more negative event – Saudi Arabia officially cut diplomatic ties with Iran. Data on the manufacturing PMI Index in Germany and in the Eurozone pointed to a slight recovery of the regional economy, also influencing the market. Today’s dynamics may be influence by data on the labor market in Germany 08:55 (GMT) and inflation in the Eurozone at 10:00 (GMT).

Resistance: 6076,64, 6110,75, 6156,24
Support: 6012,20, 5962,93, 5925,97

Communities

GOLD

Gold

Quotes of the precious metal during yesterday’s trading showed significant growth, helped by rising geopolitical tensions in the Middle East. Don’t forget, this weekend Saudi Arabia cut diplomatic ties with Iran, after storming the embassy in Tehran. Nevertheless, investors have focused on the US data. The manufacturing index from the Institute for Supply Management (ISM) came out slightly below the average forecasts of experts – 48.2 against the average forecast of 49. In addition, the index of business activity in the manufacturing sector PMI also disappointed investors, reaching 51.2 against expectations at 51.3. This data continues to support the price of gold. Today’s dynamics will depend on to the general mood of investors, and political risks.

Resistance: 1081,40, 1089,01, 1097,90
Support: 1072,30, 1066,20, 1058,06

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