Daily Market Review — 06/08/2015
Bank of England Interest Rate Decision Will Be a Key Event of the Day
Even though the pair opened yesterday’s session with a drop after the head of the Federal Reserve Bank of St. Louis Dennis Lockhart said that September is the time to raise US interest rates, it traded positively the rest of the day. Also, the dynamics of the pair yesterday was influenced by the release of the Purchasing Manager Index Services in the Great Britain. The index rose to 57.4 last month versus an average forecast of 58.0. In addition, yesterday was published ADP Employment Report. Number of employees rose to the level of 185K last month against the average forecast of 215K. Today, market participants’ attention will be focused on Bank of England Interest Rate Decision and publication of its statement at 11:00 (GMT). At the same time the head of the regulator Mark Carney will hold a press-conference.
Resistance: 1.5650, 1.5669, 1.5688
Support: 1.5595, 1.5525, 1.5499
Yesterday’s and today’s start of trading sessions the pair came under pressure. This is due to the closure of the positions for the purchase of the Australian dollar, after it rose on Tuesday amid that country’s central bank left unchanged the basic interest rate. Yesterday, the pair was mainly influenced by the mixed statistics from the US. In addition, today at 01:30 (GMT) the report of Unemployment Rate was published in Australia. It unexpectedly rose last month to a level of 6.3% against an average forecast of 6.0%. Also, report on the Changing the number of employed showed that last month the Australian economy added 38.5K workers against the average forecast of 10K. Today, pay attention to the Initial Jobless Claims report in the US, which is scheduled for 12:30 (GMT).
Resistance: 0.7391, 0.7413, 0.7447
Support: 0.7320, 0.7262, 0.7235
Yesterday’s growth of major stock exchanges in Europe was due to strong corporate reports in the region, as well as news on the Chinese economy, where the index of business activity in the services sector grew last month. Shares of mining companies were among major drivers of growth in the Europe. Also, the dynamics of stock indices yesterday was affected by PMI, which has remained at long-term highs. Another report showed that retail sales fell slightly comparing to the previous period. It is worth noting the European stock market is pressured by the almost week-long fall of the Greek market.
Resistance: 11656.05, 11762.68, 11806.48
Support: 11477.06. 11376.14, 11172.40
Gold prices continue to show a negative trend. Yesterday quotations dropped to the level of $1082.70 per ounce against a background of mixed US data. ADP Employment Report showed that the number of employees has increased in the last month, but not as fast as it was expected. On the other hand Services PMI rose to a 10-year maximum at 60.3 against an average forecast of 56.2. It should be noted that all the major components of the index, which also includes orders and employment showed an increase that could push the Fed to raise rates in its meeting in September.
Resistance: 1092.19, 1097.52, 1103.00
Support: 1080.71, 1077.10, 1040.00