Daily Market Review — 23/12/2015
Main Events of the Day – Publication of GDP in the UK and Canada, as well as US Statistics
The British currency is showing a negative trend in a wide range of markets. Market participants do not expect the Bank of England to make a rate hike any time soon. Such a conclusion is based on economic statistics and the comments of many representatives of the British regulator. The current dynamics of the GBP/JPY will depend entirely on the British economic statistics, as Japan celebrates the Emperor’s birthday. UK’s GDP will be released at 09:30 (GMT), at the same time data will be published on the British Current Account. Market participants expect a drop of both indicators in comparison to the previous figures. Published data will determine the further direction of movement of the pair. It should be noted that trading volumes will decline as we’re approaching the Christmas holiday.
Resistance: 179.91, 180.63, 182.07
Support: 179.00, 178.09, 177.04
The pair corrected downwards amid rising oil quotations. The USD/CAD has been trying to break through the level of 1.4000 for the third consecutive session. However, it’s been failing all over again, as market participants do not have enough drivers for such a move. Publication of the final reading of the US GDP for the third quarter, which was slightly better than the average forecast, as well as oil quotations, influenced yesterday’s trading dynamics. According to the published data, the US GDP grew in the third quarter by 2% against the expected growth rate of 1.9%. Yet, data on the Existing Home Sales in the US was below the average forecast. Today is the last day of the year for a large number of important economic statistics to be published. The Canadian GDP and data on Retail Sales will be released at 13:30 (GMT). The United States will also publish data on Durable Goods Orders and the PCE Price Index, which is a key indicator of inflationary pressure for the US Federal Reserve. Today’s trading of the pair is expected to be volatile.
Resistance: 1.4000, 1.4156, 1.4293
Support: 1.3850, 1.3741, 1.3620
US Stock Markets went up yesterday. These dynamics were caused by stabilization in commodity markets and the publication of positive statistics on the US GDP for the third quarter. According to the data, the American Economy rose by more than it was expected to by most observers. However, it should be noted that trading will be weak this week, as US Stock Markets will have a shortened trading day tomorrow and are closed on Friday for Christmas. Today’s trading dynamics may be significantly influenced by publication of data on Durable Goods Orders and the PCE Price Index in the United States, scheduled for 13:30 (GMT).
Resistance: 4594.03, 4611.96, 4635.58
Support: 4573.67, 4541.08, 4502.39
Light Sweet Crude Oil Futures
“Black Gold” quotes took a short break yesterday, rebounding from their lows. This was caused by a general recovery in commodity markets, as well as the closing of speculative short positions on the asset. Investors decided to take profits on the eve of the Christmas holidays after a prolonged drop in oil prices. Crude Oil Inventories statistics also supported oil quotations yesterday. According to the American Petroleum Institute, US Inventories fell last week by 3.68 million barrels per day. Today, a similar report will be released by the US Department of Energy at 15:30 (GMT). However, in the short term, oil prices will remain under pressure amid oversupply in the world market. The ban on the export of US oil and inflow of the Iranian oil to the market was lifted and in addition to the OPEC decision to protect its market share, these things will put pressure on oil prices.
Resistance: 36.67, 37.51, 38.48
Support: 35.38, 34.27, 33.65