Daily Market Review — 17/02/2016
U.K. Unemployment Rate and U.S. Producer Price Index will be the main events today
British currency fell substantially in a wide spectrum of the market after the publication of negative statistics on the consumer price index. Thus, in January consumer prices fell more than it was expected. In the final assessment rate was (-0.8%), with an average forecast of (-0.7%). In annual terms, prices rose by 0.3%, which coincided with the predicted values. The Core Consumer Price Index (YoY) showed an increase of 1.2% against the forecast of 1.3%. In addition, the oil prices’ fall has led to increased demand for the Japanese currency as a safe asset, which put additional pressure on the pair. Today in UK will be published data on Unemployment Rate at 09:30 (GMT).
Resistance: 164,53, 166,94, 168,59
Support: 161,63, 159,82, 156,81
The Canadian dollar showed drop against the US dollar during yesterday trading day due to oil prices’ fall. Let us remind that Canada is oil exporting country, so the currency depends on the oil price. Some influence provided data on Canada manufacturing sales, which were better than it was forecasted. Meanwhile, the U.S. NY Empire State manufacturing index was higher than in previous period, indicating the recovery in the US manufacturing sector. Today, the dynamics of the trade will significantly depend on data on US producer price index at 13:30 (GMT). Also, at 14:15 (GMT) will be presented U.S. Industrial Production. Nevertheless, investors will pay more attention to FOMC Meeting Minutes at 19:00 (GMT).
Resistance: 1.3907, 1.4000, 1.4096
Support: 1.3799, 1.3704, 1.3636
Major US stock indexes showed strong growth yesterday, driven by the highest increase in the price of Chinese stocks for the past three months. Some support was provided by the stabilization of oil prices. Meanwhile, the NY Empire State manufacturing index pointed to the growth of activity in the US economy. Today, investors will pay attention to data on producer prices, the volume of US industrial production and data on the US housing market, which will be published during the day. Also, today at 19:00 (GMT) there will be FOMC Meeting Minutes, which could provide some clarity about the prospects for further action by the American regulator.
Resistance: 16152.19, 16251.82, 16342.39
Support: 16045.01, 15936.33, 15863.87
Light Sweet Crude Oil Futures
In the first half of yesterday’s trading day the quotes of “black gold” rose due to expectations of an agreement between Russia and Saudi Arabia to freeze oil output. Nevertheless, at the end of the meeting, it was decided to freeze production volumes at January’s levels. Thus, investors got disappointed because they expected that the two major oil-producing countries agree on the reduction of production volumes. Meanwhile, traders are skeptical about this message, because the fate of this decision largely depends on other major players. Thus, Iran’s oil minister said yesterday that his country does not agree to freeze the volumes of oil production and “will not forget its share of the market”. Against this background, oil prices are back below $30 a barrel. However, today investors will pay attention to U.S. API Weekly Crude Oil Stock at 21:35 (GMT).
Resistance: 29.35, 30.09, 31.48
Support: 28.63, 27.70, 26.30