Daily Market Review — 15/12/2015
British Consumer Price Index Will Be the Focus of Market Participants Today
The announcement of the ECB meeting results was the turning point for the EUR/USD. After the event, the pair radically changed its direction. Yesterday was no exception. The pair reacted to news from the Eurozone in the absence of major economic statistics from the US. According to yesterday’s released data, Eurozone’s Industrial Production rose in October both m/m and y/y. Eurozone’s Employment Change Index, which will be released today at 10:00 (GMT), may also have an impact. However, all market participants’ attention will be on today’s inflation report in the United States, scheduled for 13:30 (GMT). On the eve of the start of today’s US Federal Reserve meeting on interest rates, the report will have a crucial importance. The low level of inflation was the key factor that stopped the US regulator to begin normalizing monetary policy before.
Resistance: 1.1047, 1.1097, 1.1143
Support: 1.0981, 1.0925, 1.0855
The pair began the new week with a moderate fall caused by the devaluation of the Chinese yuan. Recall that the United Kingdom is one of China’s major trading partners. The British currency continued falling down against the US dollar during the trading session. Such dynamics were caused by a speech from Nemat Shafik, the Bank of England deputy governor, who noted that she would not vote for a rate hike as long as wage growth will not meet the target level of inflation. Today’s focus of market participants will be on inflation data in the UK, which will be released at 09:30 (GMT). Also pay attention to the US inflation report, which will be published at 13:30 (GMT). It should be added that markets will learn tomorrow about the Fed’s decision regarding interest rates. In anticipation of this decision, trading may be quite mixed.
Resistance: 1.5183, 1.5239, 1.5307
Support: 1.5156, 1.5124, 1.5052
Major US stock markets showed some growth in yesterday’s trading caused by expectations of the US Federal Reserve decision on interest rates, to be announced tomorrow. At the same time, it is worth noting that investors will focus on any comments regarding the future prospects of monetary policy by the US regulator. The recovery in oil prices provided some support yesterday, as they rebounded from multi-year lows. The US inflation report, which is scheduled for 13:30 (GMT), may have a significant impact on today’s dynamics of trading.
Resistance: 17404.28, 17482.12, 17616.79
Support: 17225.13, 17131.23, 17008.09
Light Sweet Crude Oil Futures
The “black gold” quotes renewed its multi-year lows yesterday, falling to $34.50 per barrel. Oil prices continued to be pressured by a statement from the International Energy Agency on Friday, which noted that the low level of demand for oil will continue in most of 2016 as well. In addition, yesterday’s statements from the Iranian oil minister confirmed investors’ fears that the country is preparing to release a large amount of oil to the world market after the lifting of sanctions. Meanwhile, today investors will track the inventory data from the American Institute of Oil, which will be published at 21:35 (GMT).
Resistance: 36.59, 37.50, 38.93
Support: 35.33, 34.50, 34.00