Daily Market Review — 15/06/2016
Today’s FOMC Meeting will impact all markets
The currency pair continues trend negatively for the second consecutive week as the pound is still under pressure as potential Brexit looms. According to the latest poll most Britons want the UK to leave EU. Additionally, US retail sales grew more than what was forecasted, putting further pressure on the pair. Today, a whole slew of events emanating from the US have the potential to heavily influence the pair. The Producer Price Index (PPI) scheduled for 12:30 GMT will kick things off. This will be followed by the monthly Industrial Production report at 13:15 GMT. However, today’s most impactful event will undoubtedly be the FOMC meeting, scheduled for 18:00 GMT, followed by the press conference at 18:30 GMT
Resistance: 1.4191, 1.4266, 1.4352
Support: 1.4088, 1.4030, 1.3975
The New Zealand currency started the week falling against the US dollar, primarily because of the upcoming FOMC meeting. Although the probability of a rate hike is quite low, there could still be some hints about future monetary policy tightening. So far today, Balance of Payments data from New Zealand came out better than expected. However, further trading dynamics will highly depend on the results of the Fed meeting. Additionally, New Zealand Q1 GDP data, scheduled for 22:45 GMT should further influence the pair.
Resistance: 0.7072, 0.7139, 0.7222
Support: 0.6963, 0.6892, 0.6830
A number of major stock indexes including the FTSE 100 fell yesterday to near four-month lows, due to Brexit speculations. Additionally, poor UK consumer inflation data further impacted the market. Today’s trading dynamics will ultimately depend on the two upcoming meetings: The US Federal Reserve today at 18:00 GMT and the Bank of England tomorrow at 11:00 GMT.
Resistance: 6047.50, 6065.20, 6085.30
Support: 6005.10, 5975.20, 5948.30
Gold continues to trade at four-week highs as investors are flocking to the noted “safe haven” with a potential Brexit on the horizon. Additionally, analysts are speculating that the Fed will leave the rates unchanged, which should further push up the prices. Lastly, tomorrow’s interest rate decisions by Japan, Switzerland and the UK will influence the precious metal.
Resistance: 1289.52, 1295.41, 1303.35
Support: 1275.78, 1264.33, 1248.58