Daily Market Review – 13/09/2016
U.K. Consumer Price Index will drive the markets today
Yesterday, the British currency strengthened significantly in comparison to the US dollar, as investors’ risk appetite grew.
Fed Governor, Lael Brainard, said she wanted to see a stronger trend in US consumer spending, together with an evidence of rising inflation before the Fed raises the rates. Brainard added that the United States still looked vulnerable to economic weakness abroad.
Meanwhile, today’s main event is the UK CPI, which is scheduled for 08:30 (GMT). If this indicator grows, then it may impact the Bank of England’s monetary policy decision.
Resistance: 1.3351, 1.3395, 1.3444
Support: 1.3278, 1.3230, 1.3176
The Fed’s representative statement impacted the pair yesterday. Some of the financial analysts supported monetary tightening and some argued that it is not the time for such a step. The EUR/USD showed sharp fluctuations during the day, but closed at the opening levels.
Eurozone and Germany ZEW Economic Sentiment will be published today at 09:00 (GMT) and will surely impact the market.
Resistance: 1.1270, 1.1302, 1.1339
Support: 1.1208, 1.1176, 1.1138
Samsung Electronics Co
Samsung’s Electronics Co Ltd shares fell to their lowest level in nearly two months on Monday, after the tech giant told customers to switch off and return their new Galaxy Note 7 smartphones due to fire-prone batteries.
Most analysts believe that this situation will have a negative impact on the company’s image.
Resistance: 675.73, 686.10, 697.54
Support: 649.27, 638.54, 627.81
Brent Oil Futures
Oil prices rose yesterday, as US dollar fell. The OPEC monthly report showed a steady growth of oil production.
Today, data on oil stocks from the US will impact the market.
Resistance: 48.57, 49.36, 50.10
Support: 47.50, 46.75, 46.26