Daily Market Review — 18/05/2016
The FOMC Meeting Minutes will be today’s market mover.
The pair started yesterday’s trading with steady growth, helped by the results of Brexit telephone poll. 55% of all respondents advocated for the UK staying in EU, which significantly boosted the British currency. However, as the day steadily progressed the pair slowly dipped changed starting with poor UK CPI findings that fell below expectations for the first time in over five months. The Japanese yen on the other hand is looking significantly better as the nation’s quarterly GDP report surpassed most estimates. Today’s trading dynamics will depend largely on the publication of British labor market data, which is scheduled for 08:30 GMT. Additionally, Japanese machinery orders data, scheduled for 23:50 GMT should further influence the pair.
Resistance: 158.45, 159.45, 160.33
Support: 157.00, 155.83, 154.37
Yesterday the pair was trading in different directions and ultimately closed virtually unchanged. The US CPI rose at the fastest pace since February 2013. Additionally, US industrial production in April grew at two times more than expected. Nevertheless, despite the overwhelmingly positive US statistics, the pair rose slightly. Today, Eurozone CPI data, scheduled for 9:00 GMT, should have a significant impact on the pair. However, tonight’s FOMC Meeting Minutes, scheduled for 18:00 GMT should carry the most weight.
Resistance: 1.1360, 1.1442, 1.1529
Support: 1.1282, 1.1220, 1.1155
Major US stock indexes fell significantly during yesterday’s session as many investors believe that an early rate hike is inevitable. Yesterday’s overwhelmingly positive US statistics contributed to this narrative. Today’s trading dynamics will ultimately depend upon the upcoming FOMC Meeting Minutes, scheduled for 18:00 GMT.
Resistance: 17531.40, 17585.87, 17637.66
Support: 17472.47, 17422.47, 17370.13
Crude Oil Futures
Crude oil prices rose significantly yesterday, reaching $48.70 per barrel. Raw material supply disruptions in Nigeria along with production reductions in both the US and Canada contributed to the price increases. Additionally, US investment bank Goldman Sachs predicted that there will be a significant shortage of raw materials needed for oil production. Furthermore, according to the weekly US Institute of Petroleum’s report stocks fell by 1.14 million barrels last week, slightly below average forecasts (3 million barrels). Today’s trading dynamics will depend on a similar report from the US Department of Energy scheduled for 14:30 GMT.
Resistance: 48.93, 49.52, 50.00
Support: 48.34, 47.79, 47.17