Daily Market Review — 25/02/2016
Inflation rates in Japan and Eurozone will be the main events today
In the first half of yesterday’s trading day the pair was under pressure because of US dollar’s strengthening. But in the second half of the day dynamics changed. Euro recovered almost all yesterday’s losses. Such dynamics was caused by weak statistics on the US economy. Thus, according to released data, U.S. Services PMI unexpectedly fell in February to a level of 49.8 against the average forecast of experts at the level of 53.5. In addition, new home sales in the US also declined, reaching at the same time in January against expectations of 494,000 at the level of 520 thousand. Today, significant impact on pair’s dynamics can provide the publication of Eurozone consumer price index, which is scheduled for 10:00 (GMT). Also, there will be important data on U.S. durable goods orders, which will be presented at 13:30 (GMT).
Resistance: 1.1052, 1.1086, 1.1125
Support: 1.0989, 1.0947, 1.0897
At yesterday’s session the pair showed a mixed trend, which was caused by the statistics on the US economy. Thus, the US services sector slowed slightly in the current month, and new home sales fell in January. However, in the afternoon, the US dollar again moved to strengthen. This was due to lower demand for the Japanese currency as a safe asset due to the recovery of oil prices. Let us remind the last rise of the yen was caused by the problems of the global financial sector, triggering increased demand for it. Further dynamics of pair will depend on data on U.S. durable goods orders at 13:30 (GMT). Also, some influence could provide the publication of the inflation report in Japan 23:30 (GMT).
Resistance: 112.74, 113.54, 114.41
Support: 111.62, 110.98, 110.12
US stock indices started yesterday’s trading day with fall. However, during the day markets fully recovered their losses, and closed in the green zone. This trend was caused by the reduction of oil prices. Further strengthening of the stock markets was stopped by financial sector shares’ fall. Some influence provided weak US economy statistics. Today, investors will pay attention to US labor market data and U.S. durable goods orders, which will be published at 13:30 (GMT).
Resistance: 4233.00, 4264.15, 4300.50
Support: 4174.01, 4141.93, 4112.72
Light Sweet Crude Oil Futures
Quotations of “black gold” in the beginning of yesterday’ trading day fell to almost $30 dollars per barrel. This trend was caused by the refusal of Saudi Arabia to cut oil production’s volumes. According to the of Saudi Arabia’s minister of oil, they are not going to reduce production volumes, as countries such as Iran does not plan to freeze the volumes of production at the January’s level. Some pressure put a report on oil inventories from the US Department of Energy, according to which they have grown by 3.5 million barrels versus an average forecast of 3.1 million. In addition, Fitch presented a new forecast for oil – in 2016 average oil price will be $35 per barrel compared to the previous forecast of $45.
Resistance: 32.42, 33.46, 34.49
Support: 31.46, 30.61, 29.75