Daily Market Review — 21/10/2015

Daily Market Review — 21/10/2015

Bank of Canada Interest Rate Decision Is the Main Event of the Day

 

Forex

USD/CAD

USDCAD

 

The USD/CAD showed a negative trend yesterday, breaking a two-day growth. This was caused by some weakening of the US currency in the pair. Market participants anticipate the Bank of Canada decision on the basic interest rate, which will be announced today at 14:00 (GMT). After the announcement of the results BOC will have a press conference at 15:15 (GMT). Besides that, the OPEC members and other oil exporters will have a meeting today. The main topic will be, of course, the stabilization of the oil market and prices. Recall that the Canadian dollar depends on the oil prices, since this is one of the major export and revenue items of the Canadian budget. This meeting will to some extent influence the further movements of the Canadian currency.

Resistance: 1.3048, 1.3132, 1.3216
Support: 1.2930, 1.2832, 1.2722

AUD/USD

AUDUSD

The pair showed mixed trends during yesterday’s trading, but closed in the red. It was caused by economic statistics from the US construction sector. According to the data, the number of building permits has not met the average forecast. But the housing starts went slightly above analysts’ forecast values, pointing to the different situation in this sector of the US economy. Today’s economic calendar has no a lot of news. Market participants should pay attention to the speech of the Fed member Powell at 17:30 (GMT), as well as of the assistant head of the Reserve Bank of Australia Edey at 22:45 (GMT).

Resistance: 0.7298, 0.7361, 0.7440
Support: 0.7236, 0.7162, 0.7082

 

Stock Market

S&P500 Futures

SP500

Major US stock markets fell slightly in yesterday’s trading. The main focus of investors is on corporate reports. The dynamics of yesterday’s trading was also influenced by the data on housing construction in the United States, which came out mixed. Investors will also closely monitor the speeches of Fed officials and their comments in an attempt to determine how likely a rate hike will happen later this year. The US stock markets continued to be pressured by statistics on Chinese GDP, which came out better than expected, but failed to exceed the previous value, thus causing concerns among investors about the health of the world’s second largest economy. Investors should pay attention to corporate reports of companies included in the index, which can have an impact on the dynamics of today’s trading.

Resistance: 2038.80, 2055.55, 2067.74
Support: 2015.28, 1990.46, 1972.95

 

Commodities

GOLD

Gold

The price of the precious metal rose slightly in yesterday’s session, driven by the weakness of the US dollar and the fall in world stock markets. Gold prices rose to the highest level in almost four months last week on expectations that the US Federal Reserve will not raise interest rates this year. However, the quotes could not overcome the level of $1200.00 per ounce. The dynamics was also influenced yesterday by the data on housing construction in the United States. Investors also await tomorrow’s ECB meeting, at which the European regulator should clarify the prospects for its monetary policy. Concerns about the health of the Chinese economy after the publication of somehow disappointing data on GDP, grow investors’ appetite for gold.

Resistance: 1180.99, 1191.13, 1205.47
Support: 1167.03, 1159.63, 1151.06

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