Daily Market Review — 23/02/2016
German economic statistics will be the main event today
Yesterday, the European currency fell significantly against the US dollar. This trend was due to weak data on business activity in the euro area, the overall strengthening of the US dollar and the possibility of Brexit. German and Eurozone Manufacturing PMIs were slightly below the average forecast of experts, pointing to a slowdown of the regional economy. However, the same indicator for the US economy was below the average predictions of experts. The current dynamics of pair will depend entirely on the publication of the final GDP data for Germany, which will be presented at 07:00 (GMT). Also, data from the German IFO institute at 09:00 (GMT) will be published today. Meanwhile, market participants should pay attention to the U.S. Richmond Manufacturing Index, which will be published at 15:00 (GMT).
Resistance: 1.1069, 1.1139, 1.1238
Support: 1.1002, 1.0938, 1.0872
The British currency fell at yesterday’s session on a broad spectrum of the market as the Mayor of London Boris Johnson is going to campaign for Brexit. According to experts, this may have a significant impact on public opinion. Also, U.K. CBI industrial trends orders put some pressure, the figures came at -17 versus analyst expectations was at -12. Further dynamics of pair will depend on the mood of investors, which will be mainly influenced by UK staying or not in the political block. In addition, some effect can provide Bank of England’s Andy Haldane statement at 17:00 (GMT).
Resistance: 159.84, 161.79, 164.53
Support: 157.98, 156.09, 154.52
Major US stock indexes showed strong growth yesterday due to oil prices’ and commodities prices’ recovery. Also, there was optimistic mood in other global stock markets. Nevertheless, some pressure put U.S. manufacturing PMI, the rate was 51 versus an average forecast of 52.3. This situation once again pointed to the loss of momentum in manufacturing, which was observed at the beginning of 2016. Today, the dynamics of trade can be affected by the publication of U.S. Richmond manufacturing index and U.S. CB Consumer Confidence, which is scheduled for 15:00 (GMT).
Resistance: 16630.48, 16714.50, 16851.99
Support: 16380.51, 16245.28, 16110.06
Light Sweet Crude Oil Futures
Quotations of “black gold” rose yesterday by nearly $2 on the background of the report of the International Energy Agency and in the number of drilling rigs from Baker Hughes data. Thus, according to a report published yesterday in US oil production in March to be reduced, and there will be a reduction in the gap between supply and demand. Nevertheless, many experts insist that the oil’s rally will be short-lived, because Iran will increase the production with a view to recover its market share, which in turn will increase the surplus of oil on the world market. Today, the focus of investors’ attention will be on U.S. API weekly crude oil stock, which will be published at 21:35 (GMT).
Resistance: 33.74, 34.49, 35.08
Support: 32.49, 31.51, 30.61