Daily Market Review — 07/12/2015
Data on German Industrial Production Will Be The Focus of Market Participants’ Attention
The pair showed mixed trends on Friday. This was caused by ongoing reaction to the ECB’s decision on its monetary policy, followed by the biggest one-day-drop of the European single currency in six years. Economic statistics from Japan also had some influence. Thus, according to published data, the level of wages and the Confidence Index of Japanese consumers have increased. Data on the Leading Economic Index and Coincident Index was released today in Japan, which turned out to be higher than the average forecast of analysts. In addition, today’s dynamics of the EUR/JPY may be influenced by data on Industrial Production in Germany, which will be released at 07:00 (GMT). However, the publication of Japan’s GDP will have the greatest impact in the final assessment for the third quarter, scheduled for 23:50 (GMT).
Resistance: 134.57, 135.04, 135.62
Support: 133.31, 132.76, 132.22
The pair showed impressive growth on Friday after the same impressive fall on Thursday. Recall that the ECB decision, announced on Thursday, disappointed market participants and triggered massive purchases of the Euro in major currency pairs. Thus, the US currency was under pressure against the Euro, which forced market players to sell the US currency in other currency pairs. However, Friday’s publication of data on the US labor market has supported the US dollar. Thus, according to a key NFP report, the number of new jobs totaled 211,000 compared to the projected 200,000. Its value for the previous period was revised from 271,000 to 298,000. The Unemployment Rate remained at the same level, and wage growth fully met the median forecast of analysts. These facts speak in favor of a rate hike by the Fed at the meeting on December 15th – 16th. There is no important Economic information scheduled for today, so the pair will be trading on the back of Friday’s NFP report.
Resistance: 123.35, 123.49, 123.76
Support: 123.19, 122.93, 122.77
At the end of trading Friday, the major US Stock Markets showed strong growth, by 2%, caused by the positive statistics on the US labor market. So, according to published data, the NFP came out at 211,000 against an average forecast of 200,000. The Unemployment Rate was 5%, which coincided with forecasts. The report showed another month of steady growth for the US labor market, paving the way for a rate hike by the Fed. Recall that the Fed meeting is scheduled for December 15th – 16th. There is no Economic news that could have an impact on the dynamics of the Stock Markets planned for today.
Resistance: 17850.94, 17905.23, 17972.18
Support: 17763.70 17689.40 17621.51
Light Sweet Crude Oil Futures
The prices for “Black Gold” fell significantly last week, which was caused by the announcement of the results of the OPEC meeting. The organization decided to increase its oil production quota for 2016 from 30 million barrels per day up to 31.5 million. This was caused by the return of Indonesia into the OPEC. Meanwhile, OPEC representatives said they will respond after the return of Iranian oil to the world market. It is worth noting that this decision was entirely predictable, even though some investors had hoped for more radical measures to stabilize the oil market. However, a report by Baker Hughes, which showed that the number of active drilling rigs fell last week by 10 units, had some impact on the dynamics of trading. Thus the prospects of “Black Gold” remain negative, especially against the background of expectations of imminent monetary tightening by the US Federal Reserve.
Resistance: 39.81, 40.38, 41.17
Support: 39.32, 38.50, 38.00