Daily Market Review — 06/07/2016
Statements from Mario Draghi and US Fed Members will heavily influence the markets.
The pair declined sharply yesterday, with the USD strengthening significantly despite the fact PMI’s in Germany and the Eurozone beat expectations. Additionally Eurozone retail sales grew, while US factory orders fell, and the pair still fell. Today’s trading dynamics will depend on ECB head Mario Draghi’s upcoming statement at 7:00 GMT. Additionally, traders should pay attention to the US ISM Non-Manufacturing PMI and the US FOMC Meeting Minutes, scheduled for 14:00 and 18:00 GMT respectively.
Resistance: 1.1097, 1.1155, 1.1222
Support: 1.1023, 1.0970, 1.0912
The Japanese currency strengthened somewhat against the US dollar yesterday, with the Chinese PMI providing crucial support for the yen. Additionally, investors were scooping up the JPY primarily for safe asset purposes amid concerns about the Brexit fallout. This and a widespread selloff of the GBP caused the yen to soar. The feeling now is the Bank of Japan will not resort to further currency interventions for a while even with the yen rising substantially. Today, statements from FOMC Member Daniel Tarullo at 13:00 GMT along with the FOMC Meeting Minutes at 18:00 GMT should impact the pair.
Resistance:101.46, 102.16, 103.26
Support: 100.56, 99.95, 99.00
Major US stock indexes yesterday trended downwards thanks to yet another drop in oil prices. Unsurprisingly negative sentiments came about because of the UK referendum fallout. Furthermore, worse than expected US Factory Orders played a significant role in the widespread indexes drop-off. Today, all traders should pay close attention to the ISM Non-Manufacturing PMI and the FOMC Meeting Minutes scheduled for 14:00 and 18:00 GMT respectively.
Resistance: 2084.30, 2093.60, 2104.50
Support: 2067.00, 2055.80, 2040.30
Brent Oil Futures
Oil prices lost approximately 4%, thanks to the results of the Brexit, which is still hurting a number of assets including Brent. Moreover, according to recent data, oil reserves in US Cushing terminal growth last week. Additionally, the amount of available oil rigs increased further causing prices to fall. Today’s trading dynamics will revolve around the publication of US oil stocks at 22:30 GMT.
Resistance: 48.25, 48.70, 49.25
Support: 47.50, 47.00, 46.50