Daily Market Review — 09/05/2016

Daily Market Review — 09/05/2016

Switzerland’s CPI and Germany Factory Orders will be today’s main events.




The US dollar strengthened somewhat against the Swiss franc during Friday’s session despite a weaker than anticipated NFP report. According to the data, the number of new jobs was 160K versus the expected 202K. At the same time however, the unemployment rate remained unchanged at 5.0% and average hourly wages grew in line with expectations at 0.3%. Seemingly, there is still a probability of a rate hike in June, but the Fed still needs to see stronger evidence that the economy as whole is strengthening. Today’s trading dynamics will be dependent upon Switzerland’s consumer price inflation data scheduled for 7:15 GMT.

Resistance: 0.9733, 0.9800, 0.9859
Support: 0.9650, 0.9569, 0.9499



Although the pair grew strongly during Friday’s trading session after a disappointing NFP report it could not hold the gained positions probably due to recent statements from the Federal Reserve. Despite the fact that Friday’s NFP report was the weakest since 2015 the probability of a potential rate hike still remains unchanged. Today, the pair’s dynamics will depend upon the results of Germany’s Factory Orders, scheduled for 6:00 GMT. Additionally, the pair will probably be effected by the Eurozone Sentix Investor Confidence at 8:30 GMT.

Resistance: 1.1444, 1.1480, 1.1529
Support: 1.1380, 1.1339, 1.1295


Stock Market

Dow Futures


Spurred on by a weaker than expected NFP report, major US stock indexes trended up during Friday’s session. A second reason that the markets grew was profit-taking on short positions before the weekend. Today, investors should pay attention to the ramifications of China’s trade surplus that was released yesterday.

Resistance: 17727.46, 17790.62, 17856.78
Support: 17657.29, 17587.12, 17522.96



Crude Oil Futures


Crude oil prices rose slightly as the US currency faltered. Additionally, fires in Canada’s oil-sands region up in Alberta provided additional support to the oil market. Furthermore, the number of active rigs in the US last week fell another four units. However, according to most analysts, any semblance of balance in the oil market is impossible due to the vast oversupply.

Resistance: 46.02, 46.71, 47.43
Support: 45.07, 44.41, 43.26

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