DAILY MARKET REVIEW — 21/02/2017
Fed’s statement will drive the markets today
The pair spent yesterday’s session in a narrow range. The volumes were low and the economic calendar was empty. On Wednesday, Philadelphia’s Federal Reserve Bank President Patrick Harker said that the economy is ready for three rate hikes this year so today the pair showed sharp decline. Eurozone’s Services PMI came out much better than expected and helped pair.
In the future, Fed’s statements will impact the markets.
Resistance: 1.05780, 1.06049, 1.06326
Support: 1.05197, 1.04978, 1.04730
The British pound grew against the Japanese currency yesterday. The reason for such dynamics was a partial profit-taking after the fall of the previous day. In addition, UK’s industrial orders data provided support for the pair.
UK’s inflation and Mark Carney’s statement will impact the market today. At the same time, traders are waiting for UK’s GDP for Q4 2016 scheduled for tomorrow.
Resistance: 141.939, 142.808, 143.514
Support: 140.671, 139.945, 139.196
The European stock indexes grew yesterday due to companies’ positive quarterly reports. Traders are carefully watching for Trump’s next move. Meanwhile, data on producer prices in Germany showed highest rate rose for the past five years.
Today, traders will pay a lot of attention to data on business activity in EU.
Resistance: 7256.40, 7267.90, 7280.00
Support: 7220.30, 7207.00, 7191.40
Gold showed some growth yesterday.
Today, gold’s dynamics will depend on US’ business activity data. At the same time, traders will wait for US FOMC meeting minutes.
Resistance: 1235.65, 1243.35, 1250.07
Support: 1224.93, 1220.00, 1215.02