Daily Market Review — 12/07/2016
Statements from Bank of England Governor Mark Carney and various US Fed officials will impact the markets
The pair trended negatively during the first half of yesterday’s session as the dollar continued to strengthen thanks to Friday’s better than expected NFP report. Meanwhile in the UK, David Cameron announced that his resignation will commence, starting Wednesday. The pound thereby found some support after Andrea Leadsom, one of the two candidates from Britain’s ruling Conservative Party to succeed Prime Minister David Cameron pulled out of the race, leaving her rival Theresa May as the only candidate.
Today’s dynamics will depend on Bank of England Governor Mark Carney’s statement scheduled for 9:00 GMT. Additionally, statements from various US Federal Reserve officials starting at 13:15 GMT should further impact the pair.
Resistance: 1.3100, 1.3199, 1.3326
Support: 1.2972, 1.2890, 1.2794
The pair surged by more than 2% yesterday enjoying its best one-day move in more than 10 weeks as Japanese government announced that it may soon release new fiscal stimulus measures. Today the pair will be impacted by statements from various Federal Reserve officials this afternoon.
Resistance: 103.54, 104,40, 105,04
Support: 102.50, 101.75, 100.97
Alcoa Inc (AA)
Earnings season kicked off yesterday as aluminum company, Alcoa presented its quarterly report and it soundly beat expectations. The company posted adjusted second-quarter earnings per share of 15 cents on revenue of $5.3 billion. Analysts expected the company to report earnings of about 9 cents per share on $5.2 billion in revenue. After the report’s publication shares jumped more than 4%.
Resistance: 10.17, 100.32, 10.44
Support: 9.94, 9.78, 9.66
Brent Oil Futures
Quotes of oil fell slightly during yesterday’s session. The recovery of the world’s supplies is the main theme now especially now that producers in Canada and Nigeria appear ready to return online. Additionally, the number of active rigs in US increased last week, indicating the supply will soon outstrip the demand. So far this morning Brent Oil is listed at 46.66, up 0.89%. Later on today, important data on oil stocks will be presented by the US Institute of Petroleum.
Resistance: 46.90, 47.40, 48.10
Support: 46.00, 45.50, 45.00