Daily Market Review — 14/12/2015

Daily Market Review — 14/12/2015

Eurozone’s Industrial Production Will Attract The Markets Attention Today

Forex

EUR/JPY

EURJPY

The pair showed mixed trends on Friday. Publication of the Consumer Price Index in Germany, which was fully in line with analysts’ expectations, had some influence on the EUR/JPY. Meanwhile, the general decline in commodity markets, and in particular, the drop in oil prices, led investors to switch their attention to less risky assets, like the Japanese yen. The Industrial Production Index was released today in Japan and came out exactly in line with expectations. Today’s dynamics of the pair may be affected by the publication of a similar report on the Eurozone at 10:00 (GMT). It is worth noting that investors will also be interested in ECB President Mario Draghi’s speech today, scheduled for 11:00 (GMT).

Resistance: 133.31, 134.02, 134.57
Support: 132.47, 131.91, 131.47

USD/JPY

USDJPY

The pair continued its downward movement on Friday, which began on Wednesday. This was caused by a few things, namely, the use of the yen as a safe asset against a background of financial instability caused by the strong fall in commodity prices. Friday’s statistics for the United States were mixed. According to the data, Retail Sales showed an increase, although still not meeting the average forecast of analysts. The Producer Price Index pointed to a moderate increase of inflationary pressure. Meanwhile, markets are preparing for tomorrow’s publication of the inflation report on the US economy. Today’s dynamics of the USD/JPY were and will be influenced by data on Industrial Production in Japan, as the economic calendar for US is empty today.

Resistance: 121.24, 121.51, 121.86
Support: 120.56, 120.25, 120.03

 

Stock Market

DAX Futures

DAX

Main European stock indexes accelerated their declines during Friday’s session, having the worst week since August this year. The fall in commodity prices, especially oil, put pressure on the stock markets. This dragged shares of energy companies down. German Consumer Price Index also had some influence on Friday. Today’s trading dynamics may be influenced by a report on Industrial Production in the Eurozone, which will be published at 10:00 (GMT). Moreover, the ECB President Mario Draghi will give his speech at 11:00 (GMT). Meanwhile, investors are cautious before an important meeting of the US Federal Reserve, to be held on December 15th – 16th. The US regulator will likely increase its interest rates at this meeting for the first time since 2006. However, investors are more interested in a pace of rate increases, rather than the tightening itself.

Resistance: 10334.78, 10408.04, 10486.94
Support: 10268.14, 10173.60, 10089.35

 

Commodities

GOLD

Gold (2)

Prices for the precious metal rebounded a little on Friday after the publication of US statistics. The Producer Price Index showed a modest increase, but Retail Sales fell short of the average forecast, although showing moderate growth. Investors are nervous prior to the meeting of the US Federal Reserve, which will be held on December 15th – 16th. In the case of a rate increase, the price of the precious metal could fall even more, because gold does not bring interest income and is used as a defensive asset only in times of financial and political crises. There is no economic news on the US economy to be published today, so the dynamics of gold will be affected by the situation on the commodity markets and the behavior of the US currency.

Resistance: 1079.23, 1085.09, 1093.10
Support: 1070.74, 1065.15, 1057.93

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