Daily Market Review — 23/03/2016
Brussels attacks weakened European currencies
During yesterday’s trading day, European currencies were under pressure due to Brussels attacks. Despite the positive statistics on Eurozone business activity in the service and industrial sector. The Euro fell somewhat against the US dollar. Data on U.S. Manufacturing PMI came at the level of 51.4 against the average analyst forecast of 51.8. It should be mentioned that the index remained above the important level of 50 that separates growth from slowing in the economy. Today, the dynamics of the pair will depend on Belgium Business Confidence index and the U.S. new home sales that will be presented at 14:00 (GMT).
Resistance: 1,1257, 1,1377, 1,1469
Support: 1,1176, 1,1084, 1,0992
The British currency showed decline along with other European currencies after Brussels attacks. Most experts said that it will push UK to Brexit. Let us remind that the UK’s EU referendum will be held on June 23. Against this background, the British currency will be under pressure in the near future. U.K. Consumer Price Index in February appeared at the level of 0.2% and 0.3% on a monthly and annual basis respectively. Today, there won’t be important economic news, so the pair will react to the general situation, which is currently very negative due to the attacks.
Resistance: 1,4228, 1,4306, 1,4397
Support: 1,4130, 1,4053, 1,3978
Major US stock indices closed mixed yesterday. A lot of attention was paid to Brussels attacks. Nevertheless, there was important data on U.S. Richmond Manufacturing Index and in U.S. in general. So, in the Richmond region, activity increased significantly, and in the country it decreased. Stock markets received some support from Apple’s stock rise after the 21 March presentation which introduced a the iPhone SE and a new iPad Pro. Today, the dynamics of trading will depend on overall investor sentiment, because important economic statistics will not be published.
Resistance: 17545,66, 17603,77, 17660,00
Support: 17437,92, 17354,13, 17294,28
Prices of precious metal yesterday rose more than 1% after the attacks in Brussels. Gold is in high demand during the political and financial crises as a protective asset. However, gold is under pressure after US Fed leaders’ statement on raising rates in the current year. In addition, the demand in India and China is still weak. Today, the dynamics of trade will depend on the publication of the new home sales data in the US at 14:00 (GMT).
Resistance: 1240,14, 1247,45, 1253,94
Support: 1225,52, 1217,07, 1210,64