Daily Market Review — 05/05/2016
Pay attention to Alibaba (NYSE: BABA). Its earnings report will be released before the opening bell.
Yesterday, the pair showed varied results, which was caused by what occurred in the U.S. economy. The ADP Non-Farm Employment Change report failed to impress as only 156K jobs were added, below the projected 196K. Although this is not the definitive number it does offer a glimpse as to what occurred in the jobs market last month. However, not all was lost for the USD as the U.S. Markit Composite PMI and ISM Non-Manufacturing Business Activity exceeded expectations.
Today’s trading dynamics should depend upon the weekly U.S. unemployment claims scheduled for 12:30 (GMT). However, overall trading volume today should be relatively on the low end, with tomorrow’s upcoming NFP report, scheduled for 12:30 GMT.
Resistance: 107.46, 108.15, 108.78
Support: 106.24, 105.53, 104.68
Yesterday, weaker than anticipated data pertaining to the U.K. Construction PMI put significant pressure on the currency pair. However, later on during the day poor U.S. labor market statistics provided ended up supporting the pair. Today’s weekly U.S. unemployment claims, scheduled for 12:30 GMT should have the biggest effect on the pair. Additionally, the U.K. Services PMI report coming up at 8:30 GMT should play a role as well.
Resistance: 1.4632, 1.14766, 1.4895
Support: 1.4460, 1.4311, 1.4128
Major stock indexes across Europe, including the DAX fell yesterday, marking the fourth consecutive drop. Weak quarterly corporate reporting and worse than expected PMI reports in Germany, France and the Eurozone as a whole all played major roles. Additionally, weaker than expected March retail sales in the Eurozone has contributed to the DAX’s recession. Although today is a holiday in most European countries investors will pay attention to the ECB Economic Bulletin at 8:00 GMT.
Resistance: 9928.30, 10040.00, 10153.42
Support: 9780.52, 9643.04, 9534.78
Gold prices were mixed yesterday thanks to poor data pertaining to the U.S. labor market and better than expected U.S. Services PMI findings. Additionally, there was chatter by those on the Fed indicating the U.S. economy looks strong and is able to bear a rate increase despite a slew of weaker than expected economic data.
Resistance: 1283.93, 1293.43, 1303.55
Support: 1270.98, 1262.96, 1254.57