Daily Market Review — 20/06/2016
German Data will Move the Markets Today.
The currency pair displayed mixed results on Friday. Nevertheless, at the end of the day the euro strengthened against its US counterpart. Decreasing probability for a Brexit after British MP was killed on Thursday provided support for the euro. So far today the pair commenced with a sharp rise as the German PPI matched expectations.
Resistance: 1.1382, 1.1414, 1.1446
Support: 1.1320, 1.1285, 1.1249
The JPY is now under a bit of pressure as Bank of Japan President Haruhiko Kuroda has indicated that further currency interventions may be necessary if the yen continues to strengthen. According to numerous officials the yen’s latest surge is being fueled by investors turning currency as a potential Brexit seems like it will become a reality. Today’s trading dynamics will depend on the Bank of Japan’s Meeting Minutes scheduled for 23:50 GMT.
Resistance: 105.41, 106.33, 107.28
Support: 104.15, 103.54, 102.93
Major stock indexes across Europe rose slightly at the end of Friday’s trading, halting a two-week decline. A growth in Eurozone Account Data has grown significantly, which provided some support. Additionally, increasing oil prices pushed up energy stocks, which caused the indices to strengthen positive dynamics of stock indices were due to increasingly expensive oil. Stock indexes around the region kicked off the week with gains.
Resistance: 6134.50, 6157.20, 6178.40
Support: 6090.60, 6067.90, 6051.10
Brent Oil Futures
Brent oil prices rose significantly on Friday, virtually wiping out last week’s losses as the chances of a Brexit softened somewhat. Although the oil markets may not be directly impacted, such an isolation can induce pressure on all sorts of riskier assets, including oil. Additionally, rising prices could cause oil producers to up production, which will induce a supply/demand issue.
Resistance: 50.03, 50.39, 50.76
Support: 49.30, 48.90, 48.63