DAILY MARKET REVIEW — 07/12/2016

DAILY MARKET REVIEW — 07/12/2016

 

Traders will be waiting for tomorrow’s ECB meeting

 

Forex

EUR/GBP

EURGBP

The pair showed some decline yesterday because of technical factors. On the positive side, data on Eurozone’s GDP came out better than expected.

Meanwhile, data on U.K’s industrial production will be published later today. At the same time, investors are preparing for tomorrow’s ECB decision on interest rates.

According to most analysts, the European regulator may change the term of the asset purchase program, while rates will stay unchanged. This situation may cause a further EUR devaluation.

Resistance: 0.85085, 0.85444, 0.85776
Support: 0.84654, 0.84647, 0.84062

USD/JPY

USDJPY

The pair grew yesterday thanks to positive data on the US economy. US factory orders for October 2016 increased significantly, exceeding analysts’ forecast. The latest statistics on the US economy increases the probability of a monetary tightening at the next Fed meeting. This piece of news contributed to the USD’ growth.

Meanwhile, today U.S’ JOLTs job openings scheduled for 15:00 (GMT) will impact the market. Later today at 23:50 (GMT) Japan’s GDP for Q3 2016 will be published.

Resistance: 114.774, 115.916, 116.639
Support: 113.800, 112.965, 112.040

 

Stock Markets

NASDAQ Futures

NASDAQ

The major US stock indexes closed yesterday in the green zone thanks to positive data on U.S’ factory orders and unit labor costs. Factory orders grew to a 1.5 years high.

Today there won’t be important news, so traders will look after oil prices.

 

Resistance: 4795.14, 4811.98, 4829.51
Support: 4766.95, 4757.32, 4740.48

 

Commodities

GOLD

Gold

Gold is still at the lowest level for the last ten months, against the backdrop of the USD’s general strengthening. Positive data on US economy provided some support for the USD.

Now traders don’t want to buy gold on the eve of Fed’s meeting.

Resistance: 1177.70, 1187.82, 1197.34
Support: 1163.80, 1156.73, 1147.05

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