Daily Market Review — 08/12/2015
Main Event of the Day – Revised Eurozone’s GDP
The pair showed a negative trend yesterday, which was caused by the rally in the stock markets, which in turn sparked buying of the US currency. The focus of market participants remains on Friday’s data on the NFP that showed the strength of the US economy and in particular its labor market. Meanwhile, since the ECB decided to extend incentive programs at the last meeting, while the US Federal Reserve, by contrast, stands towards monetary tightening, the divergence of the monetary policy will continue to put pressure on the EUR/USD. However, the dynamics of the pair were influenced yesterday by weak data on German Industrial Production, which fell short of the forecast. Today’s dynamics will be significantly influenced by Eurozone’s GDP in the final estimate for the third quarter at 10:00 (GMT).
Resistance: 1.0870, 1.0924, 1.0996
Support: 1.0793, 1.0736, 1.0691
The pair has been trading in a negative trend for the second straight session after it grew against the background of the publication of data on US labor market on Friday. Yesterday, the dynamics of the Australian currency were influenced by the overall dynamics in commodity markets and the strengthening of the US currency. Today the pair reacted to negative news about China’s trade balance, which is Australia’s largest trading partner. According to the data, the indicator came out at 54.1 billion against the average forecast at the level of 63.3 billion. However, the National Australia Bank’s Business Confidence Index, which was published today, showed strong growth. Further dynamics of the pair will depend on the situation in the commodity markets and the general behavior of the US dollar.
Resistance: 0.7281, 0.7341, 0.7380
Support: 0.7213, 0.7157, 0.7116
Major stock markets finished yesterday’s trading mixed after the most negative week since August this year. Recall, the ECB announced a new stimulus package on Thursday, which was not enough to trigger a rally in the stock markets. In addition, ECB President Mario Draghi confirmed the expansion of new stimulus measures on Friday, if necessary. Meanwhile, Friday’s data on US labor market indicated a high probability of a rate hike at the meeting in December. German Industrial Production, which came out negative, also had some influence on the dynamics of yesterday’s trading. Today’s trading dynamics may be influenced by the publication of the Eurozone’s GDP for the 3rd quarter in the second assessment at 10:00 (GMT).
Resistance: 10993.76, 11056.82, 11143.34
Support: 10866.18, 10779.66, 10637.41
The precious metal showed a negative trend yesterday after Friday’s growth against the background of positive statistics on the US labor market. Investors preferred to close short positions on the asset after the publication of this report. Many analysts believe that the rate hike by the US Federal Reserve is already priced, so the reaction to the fact of monetary tightening may be unpredictable. However, US economic statistics aren’t any less important for gold than the interest rate. As recent statistics have been coming out mostly positive, the prospects for the precious metal remain negative.
Resistance: 1074.52, 1080.59, 1088.04
Support: 1067.84, 1060.39, 1052.56