Daily Market Review — 07/03/2016
Japan GDP will be the main event today
At Friday’s session the pair showed mixed trends. This was mainly due to the long-awaited publication of the NFP report. Thus, according to the data presented, the number of new jobs has increased to 242 thousand against the average analyst forecast of 190 thousand. The unemployment rate unchanged as it was forecasted. Nevertheless, the growth of wages in the past month declined slightly. Investors started to buy dollar immediately after the publication, but later the US currency recovered lost positions. Today, US Federal Reserve leaders’ statement (17:00 (GMT)) may influence pair’s dynamics. In addition, the final estimate of Japan GDP will be presented today at 23:50 (GMT).
Resistance: 114.26, 114.90, 115.55
Support: 113.33, 112.89, 112.30
The euro rose against the Japanese currency at Friday’s session. Low demand for the yen was due to the growth of stock markets and oil prices. The current dynamics of the pair will largely depend on the situation in the world’s stock markets. Meanwhile, Germany factory orders, which were published at 07:00 (GMT), may provide some impact. Also, the focus of market participants will be on the Eurozone Sentix investor confidence at 09:30 (GMT). This week ECB meeting to be held and the euro’s future will depend on this meeting.
Resistance: 125.79, 126.36, 127.09
Support: 124.36, 123.06, 122.07
Major stock exchanges in Europe during Friday’s trading rose slightly, aided by the published statistics on the region’s economy. Thus, the index of business activity in the construction sector in Germany has risen to almost the maximum in the history of such statistics. Also, the same indicator for the Eurozone retail sphere showed strong growth. However, this week investors will pay attention to ECB meeting scheduled for March 10.
Resistance: 6193.23, 6239.97, 6299.36
Support: 3114.17, 6032.40, 5960.53
During Friday’s trading day, the price of gold showed a volatile trend, which was caused by the publication mixed NFP data. Thus, the NFP figure raised more than it expected most of the experts, the unemployment rate remained unchanged, while wage growth unexpectedly fell. This provoked a rising of gold prices to 12 months highs. Since the beginning of this year, gold prices rose 20% amid weakening American currency. Today, US Federal Reserve leaders’ statement which is scheduled for 17:00 (GMT) will influence the market.
Resistance: 1267.93, 1279.35, 1290.79
Support: 1256.32, 1246.25, 1232.43