Weekly Market Review 21 – 25 March 2016

Inflation rate in UK and Japan will be the main events this week

 

Forex

USD/CAD, Daily

USDCAD

The main event of last week was, of course, the US Federal Reserve decision on interest rates. The market was waiting for this decision and took into consideration the Fed’s chair, Janet Yellen’s, statement. Nevertheless, market participants were disappointed because the tone of conference was dovish. In addition, the chair of the Fed said that this year there will be no more than two rate increases as opposed to the usual four. Against this background, the US currency fell against its major competitors. Nevertheless, the outlook for the US economy remains quite positive. Among the main news that will be published next week, investors should pay attention to U.K. CPI Tuesday 09:30 (GMT) and the CPI for Japan on Thursday at 23:30 (GMT). At the end of the week all the major currency closed above the zero mark. The biggest growth against US Dollar showed the Japanese yen (+ 1.96%). After that is the Canadian Dollar (+ 1.53%), Swiss Franc (+ 1.27%), Euro (+ 1.16%). Less than 1% added the New Zealand Dollar (+ 0.70%), British Pound (+ 0.64%) and the Australian Dollar (+ 0.57%).

 

Stock Market

USA

NASDAQ, Daily

NASDAQ

Last week, major US stock indices showed a positive trend. This was caused mainly by the positive dynamics of oil prices. The exception was on Monday when it became known that the largest oil producer in the world – Iran, is not ready to freeze production volumes. The main goal for the country of Iran is to reach the levels that were before the sanctions. However, the main support for stock markets was provided by the US Fed’s decision to keep interest rates at previous levels. At the end of the trading week: Dow + 2,26%, S & P + 1,35%, NASDAQ + 0,99%.

Europe

DAX, Daily

DAX

Major stock exchanges in Europe repeated the dynamics of oil prices, which recently set the tone for all markets. Also, US and UK central banks made several important decision like leaving its monetary policy unchanged. The DAX was also influenced by ECB’s decision on the basic interest rate. During next week, investors should pay attention to European economic statistics. It is worth noting that support for stock markets may provide Friday’s ECB leaders’ statement.

 

Commodities

Light Sweet Crude Oil Futures, Daily

CrudeOil

The oil market closed with increases for the fifth week in a row. This trend is due to the increased desire of investors to take risks. Also, investors are waiting for meeting of major oil producing countries (which according to preliminary information will be held in Doha, Qatar on 17 April), this also contributed to the rise of the oil markets. However, according to most analysts, the countries will not be able to agree on limitation of production, and it will put a pressure on the market.

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