Daily Market Review — 20/04/2016
Look out for UK labor market data
During yesterday’s trading session the British currency strengthened significantly against the U.S. dollar as there was a reduced concern regarding a potential Brexit. As the poll indicated far more people are opposed to a Brexit. However, further growth GBP was forgone thanks to statements by Bank of England Governor Mark Carney, who noted that there is a risk of lower interest rates in there will be a Brexit. Additionally, the currency pair grew as weaker than expected data on the U.S. housing market surfaced. Today, Ian McCafferty, the BOE’s Monetary Policy Committee member will speak at 13:00 GMT.
Resistance: 1.4417, 1.4460, 1.4510
Support: 1.4320, 1.4275, 1.4200
During yesterday’s session the pair rose slightly as speculation grew concerning a potential currency intervention by the Japanese government if the JPY continues to appreciate. It should be noted that a stronger yen can potentially hurt the country’s exports. This statement, made by Bank of Japan Governor Haruhiko Kuroda during his speech yesterday caused investors to buy U.S. dollars against the Japanese yen. However, the dollar’s has been stifled thanks to weak data on the US real estate market. From a technical point of view regarding long term trading, indicators point to a high probability that the USD will increase in value.
Resistance: 109.74, 110.25, 111.00
Support: 108.85, 108.40, 107.80
As earnings season continues in the U.S., Coca-Cola (KO) will present its quarterly report. According to the average forecast, earnings per share should reach $0.44, 6 cents above its previous earnings per share of $0.38. The company’s total revenue should come in at approximately $10.33 billion (compared to $10 billion in the previous quarter). If the forecasts are correct, share prices may rise to $48. (after yesterday’s trading day − $46.60).
Resistance: 46.75, 47.00, 47.36
Support: 46.30, 46.08, 45.86
Gold prices rose by almost 2% yesterday, as the USD weakened significantly thanks to poor U.S real estate data. So far during today’s trading session gold prices have dipped as investors continue to look ahead to next week’s Federal Reserve review of interest rate situation. The rest of today’s dynamics will depend entirely on the mood of investors.
Resistance: 1253.00, 1257.77, 1262.25
Support: 1243.00, 1236.52, 1228.86