Daily Market Review — 22/03/2016
U.K. CPI will be the main event today
At yesterday’s session, the British Pound fell on a broad spectrum of the market, driven by internal political conflicts. Work and Pensions Secretary, Iain Duncan Smith, resigned over fears about disability benefits cuts. In addition, weak statistics on industrial orders from the Confederation of British Industry put some pressure on the British currency. Today, market participants will need to pay attention to U.K. CPI, which will be published at 09:30 (GMT). According to the average forecast, the report can provide temporary support to the British currency.
Resistance: 161.79, 162.80, 163.95
Support: 160.32, 159.45, 158.39
During yesterday’s trading day, the pair showed a positive trend which was due mainly to some weakening of the Japanese currency. Despite the negative reports on the Eurozone economy, the pair continued its growth. This morning, Japan Manufacturing PMI was presented, and the data appeared negative. The index fell below the neutral level of 50 that separates growth from slowing. The pair’s dynamics can be affected by reports on PMI in France, Germany and the Eurozone at 08:00 (GMT), 08:30 (GMT) and 09:00 (GMT), respectively. Moreover, at 09:00 (GMT) there will be data from German institute IFO.
Resistance: 126.63, 127.26, 127.75
Support: 125.56, 125.16, 124.71
The main stock indexes in Europe started a new week with sharp growth, driven by ECB’s management statement. Board member, Benoit Coeure, pointed out in his speech that the last package of measures adopted by the European regulator will support the region’s economy. He added that the ECB still has enough instruments to adjust its monetary policy. In the course of further trading, stock exchanges lost position which was due to the fall of companies’ shares. This was due to negative dynamics of quotations of metals and oil. Some pressure, put weak statistics on the euro area economy. Today, the dynamics of trade will depend on Eurozone business data.
Resistance: 10131.11, 10227.03, 10309.64
Support: 9928.31, 9855.21, 9784.47
Light Sweet Crude Oil Futures
Quotations of the “black gold” rose slightly at yesterday’s session as investors continue to analyze the report on number of active drilling rigs. According to data provided by Baker Hughes’, the number of oil rigs last week increased by 1 unit. The fall in their numbers is a turning point after almost three months. In addition, market participants are hoping for an agreement to freeze production at January levels, which can reach major oil-producing countries at a meeting in Qatar on the 17th of April. Today, the dynamics of trade will depend on Institute of Petroleum’s data.
Resistance: 42.42, 43.29, 44.12
Support: 41.11, 40.31, 39.11