Daily Market Review — 16/05/2016

Daily Market Review — 16/05/2016

Traders should watch out for various US data today.

Forex

GBP/USD

GBPUSD

The pair trended negatively during Friday’s session as better than US economic data proved to be the difference maker. US retail sales demonstrated strong growth as did the producer price index (PPI). Additionally, the International Monetary Fund’s statement about a potential Brexit added some pressure on the British currency. If there will indeed be a Brexit, the pound will drop considerably, but the referendum is not scheduled until June 23.

Resistance: 1.4383, 1.4441, 1.4486
Support: 1.4338, 1.4296, 1.4248

EUR/USD

EURUSD

The pair dropped significantly during Friday’s trading, as Eurozone statistics disappointed market participants. German GDP along with the Eurozone GDP declined heavily in the first quarter. Furthermore, the German consumer price index decreased 0.1%. Meanwhile, a better than expected US retail sales report on Friday once again sparked speculation about a rate hike in the near future.

Resistance: 1.1360, 1.1442, 1.1529
Support: 1.1282, 1.1220, 1.1155

 

Stock Market

S&P500 Futures

SP500

Major US stock indexes on Friday decreased moderately as the oil market fell. Today’s trading dynamics will depend on Chinese economic data that was published on Saturday. According to the data, retail sales and industrial production in China showed growth in April, but failed to reach expectations.

Resistance: 2048.91, 2052.74, 2056.96
Support: 2040.87, 2037.63, 2034.49

 

Commodities

Crude Oil Futures

CrudeOil

Crude oil prices fell slightly last Friday, aided by partial profit-taking by investors after a solid three day growth period. Additionally, solid USD growth put pressure on oil prices. Today’s trading dynamics will be impacted by the Baker Hughes’ report, with the number of active rigs in the US falling by 10 units last week, indicating production volumes will continue to decline.

Resistance: 47.00, 48.02, 49.06
Support: 46.02, 45.55, 44.84

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