Daily Market Review — 24/12/2015
The Japanese Statistics Will Be the Main Event Today, Christmas Eve
Japanese currency continues to strengthen against the US dollar, due to the closure of long positions on the US dollar on the eve of Christmas. In addition, market participants often use the Japanese yen as a defense asset during financial or economic crises. The Bank of Japan Meeting Minutes, released this morning, which didn’t contained any hint of further expansion of stimulus measures, also had some influence on the dynamics of the USD/JPY. They supported the Japanese currency during the Asian session. Data on Initial Jobless Claims in the US, which will be published at 13:30 (GMT), may also influence today’s trading, as well as data on Japanese inflation, unemployment and household spending at 23:30 (GMT). Today, the pair is likely to continue its downward movement, since there will be a reduction of liquidity in the market due to the fact that the US trading session will be shortened.
Resistance: 121.07, 121.72, 122.29
Support: 120.50, 120.01, 119.63
British currency rose against the US dollar yesterday, recouping its earlier losses. This movement was supported by relatively positive statistics on the UK Economy. According to yesterday’s released data, the Current Account declined moderately, while GDP came out worse than the initial estimates of observers. US statistics have influenced the GBP/USD. Durable Goods Orders remained unchanged in November, while Personal Income rose slightly. However, the Personal Consumption Expenditures Price Index showed moderate growth, though not meeting with the average forecast. Today’s dynamics of the pair may be affected by the data on the US labor market, which will be published at 13:30 (GMT).
Resistance: 1.4899, 1.4955, 1.5025
Support: 1.4804, 1.4689, 1.4566
Major European Stock Exchanges rose slightly during yesterday’s session, supported by growth in mining and oil company shares. It should be noted that trading volumes remain low, as investors try to close positions and refrain from opening new ones. Yesterday’s GDP data for France and the UK also influenced the markets, falling short of the average analyst forecast, however, also pointing to some growth indicators. Today’s dynamics will be moderate, and will depend on general market sentiment. It is worth noting Germany has an official holiday, and the rest of the European trading session will be shortened too.
Resistance: 10800.76, 10882.74, 11084.56
Support: 10638.88, 10474.91, 10296.60
Prices for the precious metal fell yesterday against a stronger dollar and rising oil prices. Observers predict that the Fed will continue raising interest rates in 2016, which will negatively affect the price of gold, and that quotations of the metal are quite capable of falling below $1,000 next year. Yesterday’s American Economic statistics also influenced the market. According to the data, Durable Goods Orders remained unchanged in November, Personal Income rose more than forecasts and the PCE Price Index showed moderate gains. Today’s trading dynamics may be influenced by the publication of data on the US labor market at 13:30 (GMT). Due to the low trading volume and shortened sessions in many countries, there may be sharp movements in both directions today.
Resistance: 1075.34, 1081.27, 1085.16
Support: 1067.95, 1062.28, 1058.39