Daily Market Review — 14/04/2016
The Bank of England monetary policy decisions will be in focus today
The British currency continues to be under pressure due to the high probability of Brexit. If this happens, British economy would have negative consequences. However, yesterday US retail sales statistics, which showed a drop, provided some support to the pair. Along with this, Beige Book report was released yesterday and showed the growth in most US states. Today, market participants will pay attention to U.K. interest rate decision, which is scheduled for 11:00 (GMT). According to most experts, the British regulator will not make changes to the current settings of monetary policy. In addition, the regulator is ready to a Brexit possibility. Also, the publication of US Consumer Price Index, which will be held at 12:30 (GMT), can provide some influence. At the same time, US labor market data will be released.
Resistance: 1,4192, 1,4242, 1,4313
Support: 1,4104, 1,4057, 1,4006
Yesterday, the single European currency fell significantly against the US Dollar. This was due to the growth in risk appetite of market participants after the release of positive data on Chinese economy. Let us remind you that in recent years the Euro has the status of a safe asset. In addition, some pressure on the Euro provided weak statistics on Eurozone industrial production that fell more than most of the experts forecasted. Today, the dynamics of trade can depend on Eurozone consumer price index that will be published at 09:00 (GMT). A similar report for US will be presented today at 12:30 (GMT). According experts’ forecasts, it is expected to support the US Dollar.
Resistance: 1,1300, 1,1354, 1,1412
Support: 1,1219, 1,1178, 1,1143
Major stock indexes in Europe yesterday, showed the biggest daily growth since 2011. Positive statistics on the Chinese economy added confidence in the recovery of the country’s economy and led to speculative purchases of securities. Nevertheless, yesterday some pressure on stock markets provided statistics on industrial production in the Eurozone. At the moment, investors pay a lot of attention to quarterly reports. According to the average analysts’ forecast the profit of companies is going to decrease. Today, the Bank of England interest rates decision (11:00 (GMT)) will have a significant impact.
Resistance: 6315,65, 6354,07, 6393,24
Support: 6262,33, 6217,06, 6172,73
Quotes of the precious metal fell slightly yesterday, helped by the growth of the US Dollar. In addition, the rally in the stock markets reduced the demand for protective assets, and gold is one of this assets. Investors started to sell gold after the market received positive data on the Chinese economy. This data gave hope for a long-awaited stabilization of the second largest economy in the world. Today, the dynamics of trade will depend on the publication of the US Consumer Price Index 12:30 (GMT). It is worth noting that investors are looking for hints on the timing of Fed’s monetary policy tightening.
Resistance: 1239,63, 1246,62, 1253,28
Support: 1229,00, 1223,66, 1217,87