Daily Market Review — 16/06/2016

Daily Market Review — 16/06/2016

The UK interest rate decision will drive all markets today

Forex

GBP/JPY

GBPJPY

Yesterday the pair’s two-week plunge seemingly concluded with it finally displaying an upward trend. Support for the British currency came via better than expected on the labor. This morning however, the Bank of Japan announced its interest rate decision. As was expected, no changes in monetary policy occurred. Coupled with the probability of a Brexit, the pair is relatively volatile as of this moment. At 11:00 GMT the Bank of England will announce its interest decision, which is today’s main event. However, beforehand at 8:30 GMT the nation will release its Retail Sales report. Both of these events should impact the currency pair.

Resistance: 149.42, 151.84, 153.52
Support: 147.10, 145.69, 143.98

USD/CHF

USDCHF

The US dollar was lost ground against its Swiss counterpart throughout yesterday’s trading session, primarily because of a negative US Industrial Production report. Additionally, the Fed, as was expected did not change the rates. However, what was telling was the accompanying statement, which indicated that upcoming forecasts for the US economy are worse than what was previously estimated. Additionally, most Fed officials revised their rate hike estimates from two to only one. Meanwhile the Swiss National Bank left its interest rate unchanged and the pair is rising as a result. 12:30 GMT will feature the US Consumer Price Index, which should impact the pair.

Resistance: 0.9623, 0.9664, 0.9712
Support: 0.9576, 0.9521, 0.9466

 

Stock Market

Dow Futures

Dow

Major US stock indexes fell slightly yesterday, primarily because of the Federal Reserve’s decision to leave the interest rates unchanged. Additionally, data on producer prices and industrial production further impacted the markets. Today’s trading dynamics will depend on US CPI data scheduled for 12:30 GMT.

Resistance: 17607.18, 17660.63, 17711.59
Support: 17567.41, 17523.90, 17481.64

 

Commodities

Brent Oil Futures

BrentOil

Brent oil fell moderately, particularly at the end of yesterday’s trading session despite the US Department of Energy stating that oil inventory levels decreased. It seems as if the Fed’s bleak US economic forecast put substantial pressure upon the market. Today’s trading dynamics will revolve around the US currency.

Resistance: 48.89, 49.31, 49.77
Support: 48.37, 48.03, 47.56

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