DAILY MARKET REVIEW — 12/12/2016
Fed’s meeting will be this week’s main event
The pair continued its decline during Friday’s session after the ECB decided to extend its asset purchase program until the end of 2017. The size of the program will be reduced by €20 billion until March 2017, which pushed the euro down.
The pair’s dynamics will depend on Fed’s interest rate decision, scheduled for December14 at 19:00 GMT.
Resistance: 1.05960, 1.06480, 1.06891
Support: 1.05367, 1.05055, 1.04614
The pair traded in a narrow range last Friday. However, the UK’s trade balance data provided some support for the British currency. Today’s, dynamics will depend on US federal budget data, scheduled for 19:00 GMT. It is worth noting that the market participants will prepare for tomorrow’s British consumer inflation data.
Resistance: 1.26184, 1.26931, 1.27726
Support: 1.25469, 1.24799, 1.24175
Major stock indexes in Europe closed Friday’s trading session positively. The investors continued to analyze ECB’s decision to extend its asset purchase program until the end of 2017. This will provide support for the stock markets on the medium term. In addition, the markets observed a stock indices growth, thanks to the revised forecast for Germany’s GDP.
This week, all traders will wait for Fed’s meeting scheduled for December 13-14.
Resistance: 11257,80, 11314,80, 11413,20
Support: 11137,00, 11086,70, 11002,20
Gold prices dropped to the lowest level in the last 11 months due to a strong US dollar. This week, all traders will wait for Fed’s meeting scheduled for December 13-14. The likelihood of a rate hike at this meeting is 96%.
Resistance: 1160,00, 1165,16, 1170,60
Support: 1150,90, 1146,09, 1140,04