Daily Market Review — 12/04/2016
The report on U.K inflation will be the main event today
During yesterday’s trading day, the British currency showed strong growth on a broad spectrum of the market, because investors wanted to risk. Meanwhile, the growth of the Pound is limited in the medium term, because of Brexit’s possibility. However, the pair opened today’s trading day higher after the statement of the Japanese Minister of Finance that the government will follow the fluctuations in exchange rates and forced to take action if necessary. It is worth noting that today the main impact will provide data on inflation in the UK, which will be presented at 08:30 (GMT). Experts forecast some growth, and it could support the British currency.
Resistance: 154.50, 155.66, 156.62
Support: 153.35, 151.90, 150.43
The pair yesterday showed mixed trading, but closed almost unchanged. It should be said that in the second half of the trading day, the Euro showed a significant increase, which was due to the correction position before the Fed’s meeting, which was yesterday. Today, the dynamics of the pair will depend on German CPI at 06:00 (GMT). In addition, data on the U.S. Federal Budget Balance will be presented today at 18:00 (GMT). Market participants are waiting for tomorrow’s publication of the index of producer prices and retail sales in US. It is worth noting that the dynamics of the pair may depend on the situation on the stock markets.
Resistance: 1.1448, 1.1499, 1.1546
Support: 1.1371, 1.1334, 1.1296
Major stock indexes in Europe showed strong growth yesterday, despite the drop at the session’s start. This trend was due to the expectation of the quarterly earnings season’s start. In addition, support for stock markets provided the rise of banking sector shares’ prices. Meanwhile, investor sentiment remains negative, because according to the preliminary forecasts companies’ profit has fallen. Today, some impact on the dynamics of trade can provide the publication of the UK inflation report. At the same time, all investors will be focused on BOE decision on interest rates that will be published this Thursday.
Resistance: 9732.99, 9782.96, 9842.45
Support: 9636.61, 9585.04, 9533.11
Yesterday quotes of the precious metal rose to the highest level in the past two weeks, helped by the fact that major central banks continued period of low interest rates. Also, support for gold provided uncertainty about the prospects of US Fed rates hike. Meanwhile, investors use gold as a reliable safe asset in times of financial instability. At the moment, market participants looking for any hints on the timing of further monetary policy tightening. Now this is the main question in the market.
Resistance: 1259.35, 1268.35, 1278.05
Support: 1250.00, 1243.05, 1236.45