Daily Market Review — 11/11/2015

Daily Market Review — 11/11/2015

The Release of Britain’s Labor Market Statistics Is in Focus Today

Forex

GBP/USD

GBPUSD

The pair is ongoing a correction after Friday’s fall for a third consecutive session. The dynamics weren’t triggered by any economic events, but rather political ones. The United Kingdom has submitted to the EU their demands regarding the expansion of their rights of membership in a political union. On the other hand, market participants are preparing for speeches from a number of US Federal Reserve members, scheduled for this week. Investors will try to find proof that the Fed is serious and intends to raise rates at its meeting in December. Today’s dynamics of the pair can be significantly influenced by the labor market report in UK, scheduled for 09:30 (GMT). The labor market data greatly affects Bank’s of England decisions.

Resistance: 1.5241, 1.5303, 1.5358
Support: 1.5127, 1.5026, 1.4947

AUD/USD

AUDUSD

Yesterday’s trading went into negative territory due to disappointing statistics on Consumer and Producer Prices Indices in China. The country is Australia’s largest trading partner. In addition, the Westpac Consumer Confidence report was published yesterday and came out much worse than forecasted. Meanwhile, yet another set of Chinese statistics was published today. According to the data, Retail Sales y/y grew at an annual term more than expected, the Fixed Asset Investment came out exactly as it was predicted, but Industrial Production, which accounts for the lion’s share of the country’s GDP, showed a slight decline last month, pointing to existing problems in the national economy. It strengthened the Australian dollar versus the US currency. The current dynamics of the pair will be influenced by the expectations of tomorrow’s publication of reports on the labor market, both in Australia and the United States.

Resistance: 0.7111, 0.7157, 0.7221
Support: 0.7015, 0.6981, 0.6935

 

Stock Market

S&P500 Futures

SP500

During yesterday’s trading session, the major US stock markets showed mixed trends. Some pressure was felt by Apple, which saw a drop in its share price. The company has reduced its orders for components. This forced investors to doubt the prospects for its future pace of growth, especially in China, a key market for US companies. Some influence also came from yesterday’s data on the Import Price Index in the US, which showed another decline. This is due to the slowdown of the world economy and a strong US dollar. Today’s dynamics of trading can be significantly affected by a speech from ECB’s President Mario Draghi, scheduled for 13:15 (GMT). For the last year or so, the European regulator has shown its willingness towards a loose monetary policy that supports the stock exchanges.

Resistance: 2083.66, 2094.34, 2104.22
Support: 2063.89, 2053.69, 2033.25

 

Commodities

Light Sweet Crude Oil Futures

CrudeOil

Quotes for the ‘black gold’ have received support in the first half of yesterday’s session from traders who believe that the market has reached a bottom. Nevertheless, the International Energy Agency (IEA) reported that the intention of OPEC countries to protect their market (and thus maintain their record level production volumes) could put a negative pressure on the prices. According to observers, OPEC will leave its output quotas unchanged at its meeting on December 4th in Vienna. The oil prices fell in the second half of yesterday’s trading session. In addition, according to API, US Crude Oil Inventories rose last week by 6.3 million barrels per day, thus signaling a lower demand from this point on. The prospects of the oil market continue to be negative.

Resistance: 44.81, 45.54, 46.68
Support: 43.55, 42.56, 41.43

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