Daily Market Review — 12/01/2016
Data on Industrial Production in UK Will Be the Main Event of the Day
The pair showed an upward trend during yesterday’s session, breaking the fall that went for five straight sessions. This was caused mainly by technical factors, because the news calendar was mostly empty yesterday. However, the British currency will remain under pressure, as it is quite likely that the British regulator will not change the parameters of its monetary policy, at a meeting next Thursday, which would maintain the status-quo. For today, the dynamics of the pair can be influenced by data on industrial production in the UK, the publication of which is scheduled for 09:30 (GMT). Also, you should pay attention to the speech of the vice-chairman of the Fed, Stanley Fischer, and the speech of the Bank of England, Governor Mark Carney, to be held at 10:30 (GMT) and 14:15 (GMT), respectively.
Resistance: 1,1604, 1,4678, 1,4804
Support: 1,4494, 1,4400, 1,4340
At the beginning of yesterday’s trading Japanese currency strengthened sharply against the US dollar. Investors have traditionally used the yen as a defensive asset in the background of the negative statistics on consumer price inflation in China. However, during the day the US dollar was able to recover the previous losses on a backdrop of an almost empty economic calendar. At today’s session the Japanese currency again shows some strengthening due to data on Japan’s balance of payments, published yesterday. The balance was better than forecasted by experts. In addition, this morning, the index of consumer confidence was released, which also turned out to be slightly higher than analysts’ expectations. Today, the dynamics of the pair can be affected by Fed Vice Chairman Stanley Fischer’s statement, scheduled for 10:30 (GMT).
Resistance: 118,04, 118,75, 119,61
Support: 116,68, 166,20, 115,82
The major US stock markets showed mixed trends yesterday. Investors were focused on the intervention of the Fed, Dennis Lockhart. During the speech, he said that he sees no threat to the US economy from the financial difficulties abroad. Besides, he expects further tightening of monetary policy in the current year, if the incoming economic data will allow it. Meanwhile, some investors opened a number of new large positions amid expectations for the start of quarterly reporting in the United States. Today, Stanley Fischer’s speech, to be held at 10:30 (GMT), may influence the dynamics of trade.
Resistance: 16365,03, 16495,49, 16664,33
Support: 16081,07, 15977,28, 15915,16
Light Sweet Crude Oil Futures
During yesterday’s trading day quotes of “black gold” lost about 1.5 dollars of its value, it was the minimum in at least the past 12 years. Such dynamics were mostly caused by fears over a slowdown in China’s economy against the background of another collapse of its stock market. And that is why the outlook for global oil demand has worsened. Also, the appreciation of the US dollar puts additional pressure on commodity prices. Meanwhile, several investment banks yesterday lowered their forecast for oil prices in 2016. This situation, together with the excess of supply over demand, continues to push oil quotes down. According to most analysts, we may see a level of 20-25 dollars per barrel this year.
Resistance: 32,20, 33,17, 34,27
Support: 30,39, 29,50, 29,00