Daily Market Review — 16/02/2016

Daily Market Review — 16/02/2016

U.K. Core Consumer Price Index will be in focus of market participants today

Forex

GBP/USD

GBPUSD

The pair showed a negative trend yesterday, helped by the strengthening of the US currency. Support for the US dollar provided report on retail sales for January, which exceeded the expectations of experts, and now there is a hope that slowing of US economy will end. Today, the pair will be affected by the publication of the report on consumer price index in the UK, which is scheduled for 09:30 (GMT). According to average forecasts, experts expect a slowdown in inflation in January, which could put additional pressure on the British currency. Also, the focus of market participants will be on data on U.S. NY Empire State Manufacturing Index, which will be presented at 13:30 (GMT).

Resistance: 1.4514, 1.4578, 1.4649
Support: 1.4406, 1.4351, 1.4295

NZD/USD

NZDUSD

At yesterday’s session the New Zealand currency strengthened against the US dollar, following the dynamics of commodity areas on which there was some recovery. In addition, data on retail sales in New Zealand were published yesterday. Thus, according to the data presented in the fourth quarter, retail sales rose 1.2%, slightly below the average analysts’ forecasts at 1.4%. The annualized rate was 5.3%, forecast was 5.2%. However, today’s trading session marked by a sharp depreciation of the New Zealand dollar after the publication of inflation expectations, which in quarterly terms was only 1.6% against the previous level of 1.9%. Further dynamics of pair will depend on the investor’ tendency to take risks, as well as on the dynamics in the commodity markets.

Resistance: 0.6696, 0.6736, 0.6787
Support: 0.6585, 0.6542, 0.6490

 

Stock Market

FTSE Futures

FTSE

Major stock indexes in Europe grew significantly during yesterday’s trading day, driven by growth in shares of banking companies, car manufacturers, as well as shares in insurance companies. According to experts, there was observed divestiture in the European stock markets, and investors bought shares at more favorable prices. Some influence yesterday provided a speech from ECB President Mario Draghi to the European Parliament, he said that the regulator will take immediate action if this would require the economic situation. Today, the dynamics of trade can be affected by the publication of data on U.K. core consumer price index at 09:30 (GMT). Also, 10:00 (GMT) will be published ZEW Economic Sentiment for Germany and the Eurozone.

Resistance: 5832.29, 5889.32, 5952.98
Support: 5689.05, 5606.83, 5537.86

 

Commodities

GOLD

Gold

Gold showed some drop during yesterday’s trading day, as investors returned to the more risky, but at the same time also more profitable assets. Gold prices last week rose more than 7% due to expectation that Fed will not raise interest rates. Investors expect that the US regulator will raise rates fewer times than it was predicted at the end of last year. Such situation is less threatened for gold price, because when interest rate is low it is easier to compete with higher-yielding assets. This week, important event for investors will be the publication of FOMC Meeting Minutes, which is scheduled for 19:00 (GMT) on Wednesday.

Resistance: 1214.19, 1231.89, 1262.75
Support: 1190.16, 1174.23, 1145.39

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