Daily Market Review — 12/11/2015
Speeches from Heads of Both the ECB and the Fed Are the Main Events of the Day
During yesterday’s trading day the pair showed mixed trends, but ultimately the session ended in favor of the European single currency. Such dynamics were caused, first of all, by the lack of news on the US economy. Yesterday, the focus was on the speech of ECB’s President Mario Draghi. Since the speech didn’t contain any new information on EU’s monetary policy, the impact was minimum. Today’s economic calendar includes a large number of economic events for the two economies. Data on Industrial Production in the Eurozone will be released at 10:00 (GMT). Mario Draghi will speak again today at 08:30 (GMT) and 10:30 (GMT). A weekly report on the US labor market will be published at 13:30 (GMT). The focus of the markets though will be on the speech of Fed Chairwoman Janet Yellen, scheduled for 14:30 (GMT). It should be noted that the second half of the day will be marked by speeches from a number of other Fed officials, including Vice Chairman Stanley Fischer.
Resistance: 1.0790, 1.0896, 1.0997
Support: 1.0674, 1.0598, 1.0461
The pair is under correction after Friday’s growth that occurred due to a government report on the US labor market. The absence of any important statistics on the US economy helped maintain the correction trend. Meanwhile, the Core Machinery Orders in Japan had some impact on the pair, as it came out better than forecasted. Today, the USD/JPY will be influenced by data on the US labor market, to be released at 13:30 (GMT). In addition, there are a few speeches from Fed officials scheduled for the second half of the trading day, including its Chairwoman Janet Yellen and her deputy Stanley Fischer. If they address the prospects of monetary policy during their speeches, it can have a significant impact on the dynamics of the pair.
Resistance: 123.60, 124.39, 125.00
Support: 122.73, 121.99, 121.48
During yesterday’s trading session, European stock markets rose slightly, interrupting the weekly drop amid reports of M&A deals, as well as positive corporate reports. In addition, the focus of investors’ attention was turned to the British labor market report. According to the data, the Unemployment Rate unexpectedly fell to 5.3% against a forecasted value of 5.4%. Meanwhile, growth in average earnings slowed. Investors were also looking for hints at further easing of monetary policy in a speech by ECB’s President Mario Draghi, but he didn’t address these issues. Today, perhaps, he will start talking about the prospects for monetary policy as he is holding two speeches at 08:30 (GMT) and 10:30 (GMT). This, in turn, can have a significant impact on the stock markets.
Resistance: 6305.53, 6375.44, 6435.07
Support: 6225.34, 6142.06, 6087.57
Prices for precious metals declined slightly in yesterday’s trading on expectations of rate hike by the US Federal Reserve. Beyond that, a further drop could be triggered by physical metal purchases in China and India, which now have some religious holidays. It is worth noting that these two countries account for about 50% of the total global consumption of the metal. On the other hand, gold prices may recover amid concerns over a slowdown of the world economy and the use of gold as a safe-haven. Today’s dynamics of the gold may be affected by a weekly report on the US labor market, as well as the speeches of a number of representatives of the US Federal Reserve, which are scheduled for the second half of the day.
Resistance: 1095.79, 1102.70, 1113.92
Support: 1083.62, 1077.36, 1070.00