Daily Market Review — 22/02/2016
Eurozone PMI will be in the Focus of Market Participants
At Friday’s session, the pair showed a downward trend. Data on producer price index in Germany showed a drop in prices and put some pressure on the euro. However, this week’s trading the pair started with growth against the publication of Japan manufacturing PMI, which fell less than experts forecasted. In addition, the decrease in demand for the Japanese currency as a safe asset contributes to the rise in oil prices. The current dynamics of the pair will fully depend on the publication of Manufacturing and Service PMIs in France, Germany and the Eurozone, which are scheduled for 08:00 (GMT), 08:30 (GMT) and 09:00 (GMT), respectively.
Resistance: 126.01, 127.25, 128.25
Support: 124.85, 123.31, 121.90
In the first half of Friday’s trading day the pair showed a negative trend. The US inflation data were positive and put a pressure on the pair. Thus, according to the published data, U.S. consumer price index rose by 0.2% against expectations of a 0.1% fall in January. In annual terms, prices rose by 2% against the average forecast of experts at the level of 1.7%. However, in the second half of the trading day the British pound has recovered all the previously losses amid by British Prime Minister David Cameron’s statement that U.K. will stay in the European Union. At the same time, this week the pair started with sharp as Johnson backs `Brexit’. Further dynamics of pair will depend on the British sequence of events. Some influence may provide the publication of the U.S. manufacturing PMI at 14:45 (GMT).
Resistance: 1.4381, 1.4443, 1.4515
Support: 1.4249, 1.4171, 1.4126
During Friday’s trading day, the major European stock indexes showed a drop amid by falling banking sector’s shares. Now investors are focused their attention on whether UK will stay in EU or not. British retail sales in January, which rose more than experts forecasted, influenced the market. Nevertheless, producer prices in Germany fell less than it was forecasted, and put the pressure. Today, there will be important data on Manufacturing and Service PMIs in France, Germany and the Eurozone.
Resistance: 5926.44, 5972.60, 60200.05
Support: 5877.72, 5831.56, 5764.88
At Friday’s session, the precious metal quotes showed mixed trends, aided by profit-taking after several days of growth on the one hand, and on the other, investors still buy gold as a safe asset. US consumer price index, which showed modest growth in January, influenced the market. Meanwhile, lost demand for gold is observed due to rising oil prices. Today’s dynamics will depend entirely on the situation in the commodity and stock markets.
Resistance: 1231.56, 1245.68, 1263.03
Support: 1212.36, 1197.09, 1181.35