Daily Market Review — 23/05/2016

Daily Market Review — 23/05/2016

Today’s Eurozone PMI findings will impact the currency market.

Forex

USD/CAD

USDCAD

It seems as if the statement from the Fed is still making a positive impact on the USD as was observed during Friday’s trending. Despite positive Canadian inflation data, the US dollar still continued to strengthen. A worse than expected Canadian retail sales report and falling oil prices provided some additional pressure on the Canadian currency. Today, FOMC Member Bullard’s speech scheduled for 10:15 GMT should affect the pair. Furthermore, at 13:45 GMT US manufacturing PMI should provide an additional impact.

Resistance: 1.3161, 1.3217, 1.3296
Support: 1.3075, 1.3014, 1.2957

EUR/JPY

EURJPY

The pair trended upward during Friday’s session, caused primarily by statements from various ECB members. ECB member Benoit Ker stressed that there is no need to further reduce the interest rates. Additionally, he noted that the European regulator should invoke more unconventional methods in order to stimulate the economy. So far this morning the pair dropped somewhat, spurred on by Japan’s better than expected Trade Balance report. Further dynamics will depend on the publication of Manufacturing and Service PMI’s in France, Germany and the Eurozone, scheduled for 07:00 (GMT), 07:30 (GMT) and 08:00 (GMT), respectively. Additional impact could come on today’s Eurozone Consumer Confidence Index findings, scheduled for 14:00 GMT.

Resistance: 124.03, 124.41, 124.85
Support: 123.13, 122.73, 122.28

 

Stock Market

S&P 500 Futures

SP500

Major US stock indexes including the S&P 500 rose slightly during Friday’s trading session, thanks to positive reporting by many companies. Additionally, existing home sales rose for the second straight month. Today’s trading dynamics will depend on the oil markets, along with the US Manufacturing PMI, scheduled for 13:45 GMT.

Resistance: 2055.07, 2059.53, 2063.10
Support: 2047.93, 2043.38, 2039.36

 

Commodities

GOLD

Gold

Precious metal prices fell for a third session in a row, because of an increased chance of rate hike in June. Further pressure on gold prices was due to a better than expected US existing home sales report. Today’s trading dynamics will depend on the US dollar exchange rate and how much investors are willing to risk.

Resistance: 1258.66, 1266.19, 1272.10
Support: 1248.35, 1243.85, 12380.75

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