Daily Market Review — 16/11/2015
The Eurozone CPI Release Is the Main Event of the Day
The pair traded on a negative trend Friday in the background of mixed statistics on the GDP of France, Germany and the Eurozone. According to the data, the French GDP came out slightly better than forecasted, Germany was in line with analysts’ expectations, while the Eurozone fell short of the predicted values. Indicators of the Industrial Production in Japan showed an increase on Friday over the previous reporting period. Today’s trading opened with a large bearish gap on the background of the terrorist attacks that took place in the French capital on the night of Friday to Saturday. As for the economic statistics that may have an impact on the dynamics of the EUR/USD, it is necessary to highlight Japan’s GDP data, which was published yesterday and showed some decline. Also today, at 10:00 (GMT), we’ll have the final data on Consumer Price Index in the Eurozone, while at 10:15 (GMT) ECB’s President Mario Draghi will deliver a speech.
Resistance: 131.56, 131.84, 132.18
Support: 130.62, 130.10, 129.59
The Canadian dollar fell against its US counterpart on Friday. Such dynamics were caused by the publication of US data on Retail Sales. According to the statistics, this index increased at a slower pace than most analysts had expected. However, the sell-off of the US currency was temporary, as published values were higher than the previous ones. Today’s dynamics of the USD/CAD will be influenced by data on Manufacturing Shipments and Foreign Securities Purchases in Canada at 13:30 (GMT). Also pay attention to the publication of the NY Fed Empire State manufacturing index at 13:30 (GMT).
Resistance: 1.3348, 1.3379, 1.3429
Support: 1.3274, 1.3190, 1.3141
The major European stock markets were significantly pressured against the background of GDP data from the Eurozone. Statistics on the economies of France, Germany and the Eurozone, released on Friday, disappointed investors and pointed out some problems in the economies of the region. At the same time, the Fed signaled it is ready for a rate hike at their meeting in December. Today’s dynamics of trading on European markets will be affected by the terrorist attacks in France and the beginning of large-scale military operations in Syria by France, in response to the attacks. Mario Draghi’s speech at 10:15 (GMT) might also have an impact.
Resistance: 6142.06, 6205.80, 6270.57
Support: 6074.20, 6031.02, 5965.22
The price of the precious metal has changed little on Friday. The strengthening of the US dollar was offset by a fall in the stock markets. Nevertheless, the statistics on Retail Sales in the US and Consumer Confidence delivered some pressure. If the first figure was mixed, the latter showed an increase. Today’s morning trading showed an increased demand for gold by investors, as it is seen as a safe asset amid political conflict over the terrorist attacks in France and the bombing of Syria in response to them. Today’s dynamics of trading will be influenced by incoming news about the military operation in Syria. The NY Fed Empire State manufacturing index at 13:30 (GMT) may also have an impact.
Resistance: 1102.70, 1113.92, 1122.37
Support: 1079.61, 1065.00, 1055.00