Daily Market Review — 21/09/2016
Fed’s interest rate decision is today’s main event
The pair trended downwards yesterday due to weak statistics on the US housing market. Building permits slipped last month to a 1.14 million-unit rate, even though analysts expected them to grow. Housing starts fell more than forecasted.
Meanwhile, the Bank of Japan announced its interest rate decision this morning. Even though the bank kept its rates unchanged, it gave a clear signal that it’s going to increase the money supply. Furthermore, Japanese officials are taking into consideration the possibility of future rate cuts. The pair rose sharply on this background.
Resistance: 103.053, 103.526, 103.806
Support: 102.315, 101.987, 101.540
The pair soared in the first half of yesterday’s trading session day, as the German Producer Price Index fell less than expected. However, most market participants are cautious to open new positions before the FOMC announces its interest rate decision.
Resistance: 1.11499, 1.11818, 1.12130
Support: 1.11140, 1.10818, 1.10503
General Electric Co. (GE)
General Electric announced its plan to invest about $10 billion in Argentina’s economy until 2026. These funds will be spent on the construction of seven thermal power plants. The company has already invested $1.2 billion during last four months. Analysts expect that these construction projects will lead to higher dividends on the mid-term.
Resistance: 29.81, 29.96, 30.11
Support: 29.53, 29.34, 29.14
Brent Oil Futures
Prices rose yesterday, due to only a 7.5 million barrel draw in U.S crude oil supplies, instead of the amount that many expected. Another reason for the increase in prices is because of the upcoming OPEC meeting in Algeria. Meanwhile, investors are waiting for Crude Oil Inventories report from the US Department of Energy, scheduled for today at 14:30 (GMT).
Resistance: 46.97, 47.56, 48.01
Support: 46.26, 45.65, 45.08