Daily Market Review — 25/05/2016
Canada Interest Rate Decision at 14:00 GMT is today’s main event.
Yesterday the pair trended positively for most of the trading session thanks to slew of positive statistics pertaining to the US economy. New home sales beat all expectations, rising to the highest value in nearly eight years. However, stronger than anticipated oil prices caused the pair to drop. Today’s trading dynamics will depend on the U.S. Services PMI and the Bank of Canada’s interest rate decision scheduled for 13:45 and 14:00 GMT respectively.
Resistance: 1.3161, 1.3217, 1.3296
Support: 1.3075, 1.3014, 1.2957
Weaker than anticipated European statistics caused the pair to fall significantly yesterday. Additionally, the results of the latest Brexit poll provided further support for the British currency. Most Britons want the country to stay within the confines of the EU. Bank of England’s Governor, Mark Carney further helped the GBP’s cause by stating that the possibility for a rate hike exists if the country were to stay within the EU. As of now the pair is rebounding nicely as the Germany Ifo Business Climate beat expectations, coming in at 107.7.
Resistance: 0.7653, 0.7704, 0.7747
Support: 0.7608, 0.7566, 0.7533
All of the major US stock indexes made significant gains yesterday, helped by a rising share prices within the banking sector. Additional support came via yesterday’s better than expected US new home sales report. Today, the markets will probably react to remarks that will be given by leading US Federal Reserve officials.
Resistance: 17749.56, 17789.36, 17829.16
Support: 17689.41, 17649.61, 17610.70
Gold prices fell more than 1.5% yesterday as robust new home data in the US lifted the dollar. This certainly increases the probability of a rate hike by the Federal Reserve as early as the June policy meeting. Today’s trading dynamics will revolve around remarks that will be given by various Fed officials.
Resistance: 1230.95, 1243.14, 1258.66
Support: 1223.40, 1216.44, 1208.60