Daily Market Review — 24/03/2016
US economic statistics will be the main event today
The pair showed a positive trend yesterday, which was caused by the stabilization of the US currency. During the last two trading session, the US dollar stabilized due to Fed leaders’ statement that rate hike at the next meeting (April 26-27) is possible. Some support was also provided by data on new home sales in US, which were better than what experts forecasted. Today, investors should pay attention to U.S. durable goods orders, which will be published at 12:30 (GMT). Also, there will be important data on Japan consumer price index at 23:30 (GMT). It should be noted that almost all world stocks will be closed tomorrow due to Good Friday.
Resistance: 112.90, 113.23, 113.81
Support: 112.28, 111.75, 111.37
The British currency stays under pressure due to the increased speculation about Brexit, especially after the Brussels terrorist attacks. According to most analysts, the British Pound will remain under pressure before the UK’s EU referendum, which is scheduled for June 23 this year. However, today important data on retail sales in the UK in February will release at 09:30 (GMT). In addition, Japan consumer price index could provide some influence.
Resistance: 159.50, 160.33, 161.55
Support: 158.39, 157.48, 156.16
Major European stock markets closed yesterday’s trading in mixed trends, due to shares’ sale of mining and commodity companies. Meanwhile, the support was provided by German Chancellor Angela Merkel. She talked about budget expenditures’ increase in infrastructure reform. Also ECB board member Lautenschlager said that interest rates could be lowered at any time. However, the other head of the ECB – Bundesbank President Weidmann stated that the measures taken at the last meeting have gone too far. Today, the dynamics of trading will depend on investors’ general mood. Most likely, the volume of trading today will be reduced before the long weekend.
Resistance: 6159.87, 6187.36, 6211.35
Support: 6086.56, 6058.46, 6024.25
Light Sweet Crude Oil Futures
Quotations of “black gold” fell significantly yesterday, dropping at the same time below the psychological level of $40 per barrel. This trend was due to the significant growth of US crude oil inventories. The second reason for the negative dynamics was the stabilization of the US Dollar. Let us remind you that the meeting of world’s major oil-producing countries is scheduled on April 17, they will discuss the freezing of oil production to stabilize prices. There is a risk that the courtiers will not be able reach an agreement. In the near future, oil prices will be in a downward trend since the high supply will put a pressure on markets worldwide.
Resistance: 40.38, 41.26, 42.42
Support: 39.05, 38.00, 36.94