Daily Market Review — 07/09/2015
Investors Will Be Focused On German Industrial Production Statistics
The most important report on the US labor market was published last Friday. Prior to the release of the news the pair traded in a narrow range. Upon the release the pair changed trends, since the data turned out to be mixed. The unemployment rate fell to 5.1% against the average forecast at the level of 5.2%. Wages grew by 0.3% against analysts’ expectations of 0.2%. But the NFP indicator was 173K against analysts’ expectations at the level of 220K. We’d like to point out that the NFP for August is usually falls short with forecast. There is no economic news in the US scheduled for today, since the United States is celebrating Labor Day. All market participants’ attention will be focused today on industrial production index in Germany, which will be released at 06:00 (GMT).
Resistance: 1.1243, 1.1332, 1.1396
Support: 1.1086, 1.1017, 1.0975
Throughout last week the pair traded with a negative trend. Last Friday wasn’t an exception. Even though the there was no economic data on the British economy, the pair continued to fall on Friday. The reason for this lies in negative statistics on the UK economy, which was published last week. On the contrary, statistics on the US economy gives hope for tightening of monetary policy at the next Fed meeting in September 16-17. Today the economic calendar for the US economy as well as for British is empty, so the pair will react, most likely on technical signals. In addition, it is likely that the pair will experience correction today form the last week fall.
Resistance: 1.5271, 1.5332, 1.5407
Support: 1.5142, 1.5097, 1.5056
During the Friday session, major European stock indices fell sharply, losing all the gains made in the previous two days. Such dynamics were caused by concerns over global economic growth, as well as the probable increase of interest rates in the United States, which become more likely after Friday’s report on the labor market. Recall, on Thursday strong support for major European stock markets had a speech of the ECB President Mario Draghi. He drew attention of investors that the bank will continue its quantity easing program, though ECB lowered the forecast for GDP growth in the 2015-2017. Today’s trading session promises to be quiet, as the economic calendar is almost empty. Moreover, the United States is celebrating the Labor Day.
Resistance: 10378.68, 10654.15, 10810.00
Support: 9882.12, 9715.39, 9316.69
During the Friday’s session the gold quotes were in a narrow range in the expectation of important statistics on the US labor market. After the publication of the data, gold showed a mixed reaction, rising to the level of $1130.00 per ounce, and then also rapidly sinking to the level of $1117.00. It should be noted that the presented data on unemployment in the United States have increased uncertainty about the future steps by the US Federal Reserve. Recall that this was the last major report before the meeting, to be held on September 16-17. About 30% of the analysts predict that the Fed could decide tighten monetary policy on its September meeting, for the first time since 2008.
Resistance: 1130.10, 1136.01, 1142.29
Support: 1117.62, 1109.56, 1105.67