Daily Market Review — 13/01/2016
The news about Industrial production in the Eurozone will be the main today
The European currency is losing its positions against the US dollar during the third consecutive session. Impressive data on the US labor market are in focus of market participants. Meanwhile, many investors use euro as the currency of funding against the background of negative statistics on the Chinese economy. As it became known yesterday, PBOC intervened to stabilize the national currency, which reduced the demand for the euro. In addition, Fed Lacker said yesterday, that the future prospects of rate hikes will entirely depend on the market situation, in particular on the level of inflation. Today, data on industrial production in the Eurozone, scheduled for publication at 10:00 (GMT), may seriously influence the dynamics of pair. Also, publication of the federal budget and the Fed’s Beige Book at 19:00 (GMT), may have some effect.
Resistance: 1,0869, 1,0900, 1,0969
Support: 1,0810, 1,0769, 1,0714
After the collapse of the Australian dollar on Monday which was amid by a negative report on inflation in China, currently the currency of Australia recovered almost all the losses. Yesterday it became known that the Chinese regulator intervened to stabilize the national currency, which had, in turn, support and the Australian dollar. Moreover, today it was announced that China’s trade surplus amounted to 58.2 billion dollars in December, against the average forecast of experts at the level of 53 billion. It also supports the exchange of Australia, since its course is entirely dependent on the market situation in the economy of China. Today, the dynamics of the pair may be influenced by the US federal budget and the Fed’s Beige Book at 19:00 (GMT).
Resistance: 0,7046, 0,7095, 0,7157
Support: 0,6979, 0,6927, 0,6879
The main European stock indexes have recovered during yesterday’s trading, because of positive news on the Chinese economy. Yesterday, the Chinese central bank intervened to stabilize the national currency, which has supported country’s stock market. However; further growth of stock markets was stopped by another drop in oil prices amid the ongoing oversupply in the world market. However, serious pressure on Britain’s FTSE has yesterday’s statistics on industrial production in the UK. Thus, according to yesterday presented data, the figure came in at -0.7% in November, while experts expected zero change. In annual terms, figure amounted to 0.9% against an average forecast of 1.7%. It pointed to a clear slowdown in the sector of the British economy. Today, the dynamics of stock markets in Europe will depend on the publication of a similar report on the euro area in the 10:00 (GMT).
Resistance: 5917,75, 5962,93, 6012,20
Support: 5809,10, 5772,17, 5720,30
Precious metals’ quotes declined slightly during yesterday’s trading, they were below the level of 1090.00 dollars per ounce. Such dynamics was caused, mainly, by the strengthening of the US dollar and a rally on European stock markets. And demand for the precious metals, as a protective asset, reduced. It should be noted that the price of gold rose from the beginning of this year by 3%, as rising geopolitical tensions in the world has boosted the demand for this asset protection. Meanwhile, investors turned their attention to monetary tightening by the US Federal Reserve. During his speech yesterday, Fed Lacker said that further steps of US regulator will depend on incoming economic data. Also, he noted that inflation may not be enough to make a decision on changing the parameters of monetary policy at a meeting in March. Today, the dynamics of trading will depend on the overall situation in the global stock markets.
Resistance: 1093,29, 1108,17, 1120,83
Support: 1082,51, 1072,30, 1058,62