Daily Market Review — 24/09/2015

Daily Market Review — 24/09/2015

Feds Chairwoman Janet Yellen Speech Is the Main Highlight of the Day

 

Forex

GBP/USD

GBPUSD

GBPUSD

 

The pair has been declining for four trading days. This is caused by the strengthening of the US dollar across the world. Some influence on the dynamics of the pair yesterday had data on the MBA Mortgage Applications in the United States, which came at 13.9% against the previous value at the level of 7%. The Richmond Fed Manufacturing Index was also released yesterday, which turned out to meet the forecasts at the level of 53. In addition, MPC Member Dr Ben Broadbent had a speech yesterday. In his comments he noted that the slow growth of wages and productivity in the U.K. takes place mainly due to a shift towards low-skilled labor. Today, the dynamics of the GBP/USD may be influenced by news from the US, namely, the Initial Jobless Claims and Durable Goods Orders, scheduled for 12:30 (GMT). And with that, all the market participants’ attention will be focused today on the speech of Fed Chairwoman Janet Yellen, which is scheduled for 21:00 (GMT).

Resistance: 1.5325, 1.5370, 1.5413
Support: 1.5218, 1.5176, 1.5090

USD/JPY

USDJPY

USDJPY

 

The beginning of this trading week was marked by three consecutive public holidays in Japan. Against this background, the pair showed mixed trading. As we know, the Japanese currency is a defensive asset, so amid a low volume of trading it was in high demand among investors as the Chinese economy is apparently in a slowdown. Some influence today also had the publication of the Manufacturing PMI in Japan, which fell short of forecasts. According to the data, the index came out at 50.9, which is below the expected 51.7. Market participants should also pay attention today to the publication of economic statistics in the United States, scheduled for 12:30 (GMT). Particular attention should be paid to the speech of the Fed Chairwoman Ms. Yellen at 21:00 (GMT).

Resistance: 120.38, 120.67, 120.98
Support: 119.62, 119.38, 119.05

 

Stock Market

NASDAQ Futures

NASDAQ

NASDAQ

 

Yesterday’s trading session wasn’t able to determine the direction of further movement of the US stick markets. The Manufacturing PMI in China declined once again to a level of 47 against the average forecast of analysts at the level of 47.5. It triggered increased volatility in US stock markets. In addition, investors worried about the timing of the first rate hike by the US Federal Reserve. And with that, data on the Richmond Fed Manufacturing Index remained unchanged last month at 53. Today, attention of investors will be focused on the Fed Chairwoman speech at 21:00 (GMT).

Resistance: 4279.61, 4294.33, 4316.64
Support: 4220.27, 4201.53, 4183.68

 

Commodities

Light Sweet Crude Oil

Crude Oil

Crude Oil

 

Yesterday quotes of “black gold” were under significant pressure as the Manufacturing PMI of the world’s second-largest consumer of raw materials fell once again. It should be noted, that the second-largest oil company in Europe has reduced its forecast for production for 2017. Bear also in mind that analysts from the 13 leading investment banks, surveyed by The Wall Street about the forecast of oil prices in the near future, downgraded them by average of $7 per barrel. On the other hand, a government report on Crude Oil Inventories in the United States showed that stocks fell by 1.9 million barrels last week compared to the average forecast of –1.5 million.

Resistance: 44.99, 45.33, 45.73
Support: 44.37, 44.05, 43.57