Daily Market Review — 11/04/2016
Earning season’s start will be the main event today
During Friday’s trading day the pair showed mixed trends, due to the publication of economic statistics. So, the pair has raised expectation substantially on U.K. industrial production data. But after the publication the pair lost all its positions. In February, the UK industrial production fell unexpectedly. However, after the first reaction caused by the negative statistics the pair recovered all losses, which was due to the positions’ correction before the weekend. Today, there won’t be any important news published. The only exception is William Dudley’s statement, scheduled for 13:25 (GMT).
Resistance: 1.4192, 1.4242, 1.4313
Support: 1.4057, 1.4006, 1.3948
On Friday, the Australian Dollar tried to win back positions that were lost after Janet Yellen’s speech. The positive dynamics in commodity areas provided some support to the Australian Dollar. In addition, after the vice-chairman of the Fed’s speech, the American currency has come under some pressure. This morning the pair’s dynamics was driven by the report on the consumer price index and producer price index in China, which is Australia’s strategic trade partner. Further dynamics of the pair will depend entirely on the situation in the commodity markets.
Resistance: 0.7577, 0.7598, 0.7616
Support: 0.7527, 0.7492, 0.7474
Major US stocks started Friday’s trading day with positive dynamics. This trend was caused by the sharp rise in oil prices. In addition, Janet Yellen’s statement pointed to the US economy’s growth, which could trigger the growth of the stock market. Nevertheless, the statistics on wholesale inventories, which fell unexpectedly, put some pressure on the markets. Today, investors will pay attention toa earnings season’s start, which traditionally starts with the quarterly report of aluminum giant Alcoa. It is worth noting that in the coming week there will be a lot of reports from the banking sector.
Resistance: 17523.69, 17604.56, 17690.11
Support: 17421.58, 17360.62, 17294.67
Light Sweet Crude Oil Futures
On Friday’s trading day the quotations of the “black gold” rose significantly. Investors hope that oil-producing countries will make an agreement at the meeting in Doha on April 17th. In addition, the positive statistics from US and Germany provided some support to the market, and gave a hope for a demand recovery. Also, data from Baker Hughes service companies reduced the number of active rigs in the US that supports the oil quotes. Meanwhile, investors are still worry about surplus of oil in the world market.
Resistance: 40.28, 41.11, 41.86
Support: 38.99, 38.25, 37.18