Daily Market Review — 09/11/2015
The European Economic Statistics Will Come in Focus Today
The European single currency depreciated significantly against the US dollar on Friday, falling below 1.0800. This was caused by some excellent NFP statistics. According to the data released on Friday, the index reached 271,000 new jobs against the forecast of 180,000. At the same time, the Unemployment Rate fell to 5.0% against a forecast of 5.1%. As for the growth of wages, the index unexpectedly rose by 0.4% against analysts’ expectations of 0.2%. These statistics speak in favor of a rate hike by the US Federal Reserve at its meeting in December. Today’s dynamics of the EUR/USD will be influenced by data on Current Account and Trade Balance in Germany, which are scheduled for 07:00 (GMT). Moreover, the Sentix Investor Confidence in the Eurozone will be released at 09:30 (GMT). However, the pair will continue to be influenced by Friday’s NFP data.
Resistance: 1.0833, 1.0993, 1.1091
Support: 1.0705, 1.0573, 1.0461
The pair continued to trade in a positive trend on Friday against the background of positive statistics coming from the US labor market. It should be noted that the USD/JPY has been in an uptrend for the sixth consecutive session, managing to gain a foothold above the level of 123.00 yen per US dollar. This may have an impact on the Fed’s members in terms of changing the dates for the first tightening of monetary policy. A recent speech by Fed member Williams only adds confidence to investors. During his speech Williams said that the next step will be the tightening of monetary policy. Today’s economic calendar is almost empty, so the pair will likely be influenced by Friday’s report on the labor market and technical factors.
Resistance: 123.48, 124.39, 125.00
Support: 121.99, 121.48, 120.89
The major US stock indexes closed mostly in the green zone on Friday. Such dynamics were caused by better than expected data on the US labor market, which pointed to a strong economic recovery. It should be noted that the published figures are very close to the targets of the US Federal Reserve, which are used to determine the timing for a rate hike. Today’s dynamics will be influenced by Friday’s report on the NFP, as well as the release of some quarterly corporate reports.
Resistance: 4730.77, 4767.68, 4806.24
Support: 4697.72, 4626.03, 4584.43
Light Sweet Crude Oil Futures
The prices for “black gold” fell on Friday due to the strengthening of the US currency, triggered in turn by positive reports on the labor market. According to the data, US economy has created 271,000 new jobs last month compared to the forecast of 180,000. Oil prices have recorded a third consecutive fall on the background of oversupply in the world market. Meanwhile, according to Baker Hughes, the rig count in the US dropped again, this time by 12 units, pointing to a reduction of investment in this sector, which could lead to a decrease in supply in the world market. This, in turn, will help stabilize oil prices.
Resistance: 45.08, 45.88, 46.91
Support: 44.16, 43.29, 42.56