Daily Market Review — 06/06/2016
US Fed Chair Yellen’s speech at 16:30 GMT will impact all markets.
The pair rose substantially during Friday’s trading session, helped by the US labor market’s glaringly weak data, with only 38K jobs added, 126K fewer than what was anticipated. Nevertheless, the unemployment rate unexpectedly fell to 4.7% and the average hourly earnings grew to 0.2%. Overall the USD took a major hit. This morning so far Australia’s MI Inflation Gauge decline to -0.2%. Today’s trading dynamics will be further impacted by Friday’s NFP data. Additionally, Federal Reserve Chair Yellen’s speech is scheduled for 16:30 GMT.
Resistance: 0.7364, 0.7402, 0.7443
Support: 0.7296, 0.7258, 0.7216
The Japanese currency strengthened significantly against the major currencies last week, caused by the decision to not impose an additional sales tax. Meanwhile, Eurozone retail sales data and the ECB’s decision to keep its monetary policy unchanged provided additional pressure on the pair. Today’s trading dynamics will depend on the Eurozone Sentix Investor Confidence data, scheduled for 8:30 GMT.
Resistance: 121.56, 121.95, 122.33
Support: 121.06, 120.66, 120.34
Major European stock indexes fell slightly last Friday as investors paid attention to the disappointing NFP report. Additionally, weak Eurozone retail sales data put further pressure on the stock market. The FTSE in particular was affected by the UK Services PMI. Today’s dynamics will depend on the German factory orders scheduled for 6:00 GMT.
Resistance: 6227.56, 6246.23, 6263.69
Support: 6182.99, 6162.51, 6140.83
Crude Oil Futures
Crude oil came under pressure during Friday’s session, primarily because of the latest OPEC meeting. Unsurprisingly OPEC members were unable to agree on virtually on anything. Additionally, weaker than expected data on the US labor market negatively impacted the oil market. Meanwhile, according to the latest data OPEC member countries produced a record 32.44 million barrels per day. This without a doubt should negatively impact oil quotations.
Resistance: 49.24, 50.00, 50.74
Support: 48.29, 47.69, 47.08