Daily Market Review — 26/01/2016
US Economic Statistics – The Main Focus of Market Participants
The Swiss franc strengthened somehow against the US dollar yesterday. Such dynamics were caused, mainly, by the lack of news in the economic calendar, however, market participants followed the dynamics of the stock exchanges. Another drop in oil prices led to a drop in global stock markets, triggering increased demand for protective assets. Let us remind you that the Swiss franc and Japanese yen are often used as defensive assets. Meanwhile, market participants are cautious with opening new positions ahead of the US Federal Reserve decision on interest rates. The results of the meeting, which begins today, will be announced tomorrow at 19:00 (GMT). Today, the dynamics of the pair may depend on the publication of the trade balance in Switzerland 07:00 (GMT). Also, today will be presented a number of US Economic Statistics. For example, in 14:45 (GMT) Service PMI will be published by Markit, and 15:00 (GMT) will be presented The Richmond Manufacturing Index.
Resistance: 1.0167, 1.0215, 1.0260
Support: 1.0106, 1.0061, 1.0008
Recently the Russian currency strengthened against the US dollar. This was caused mainly by stabilization of oil’s price, which rebounded from multi-year lows. In addition, the Russian ruble benefits from some additional support as the end-of-month tax period begins in earnest next week, when Russian exporters have to convert their overseas earnings into rubles to pay taxes to the state budget. Nevertheless, the prospects for the Russian ruble remain negative due to oil quotations. However, Bank of Russia’s meeting, which is scheduled for January 29, will be the main focus of market participants. From this meeting, most experts do not expect any change in the current monetary policy, but at the same time, the Russian regulator may clarify its further action.
Resistance: 80.3166, 82.4089, 84.8577
Support: 78.4105, 76.8216, 73.7783
Previous two-day increase was stopped in yesterday’s trading due to the renewed decline in oil prices, which has returned to the area mark $30 per barrel. Meanwhile, the negative impact has data on business activity from the Federal Reserve Bank of Dallas, which unexpectedly fell in the reporting period. However, investors’ attention gradually switched to the two-day meeting of the US Federal Reserve, the results of which the market finds out tomorrow at 19:00 (GMT). The quarterly reporting season will be in the focus of market participants. So, yesterday, McDonald`s, published its quarterly results that exceeded the expectations of experts. Today, investors will pay their attention to Apple’s quarterly report, which will be published after the regular session’s close.
Resistance: 1903.81, 1926.86, 1946.21
Support: 1852.76, 1828.27, 1805.76
Light Sweet Crude Oil Futures
The quotes of “black gold” fell by more than 4% yesterday. The falling was on the back of reports that Iran is ready to increase oil production to record levels. Iranian Oil Minister said the country is ready to increase oil production to 4 million barrels per day. Meanwhile, OPEC Secretary General called on member countries to hold an unscheduled meeting to discuss the further prospects of the oil market. He paid special attention to huge oil reserves that currently exist. In addition, he noted that the low price of oil in the medium terms may become a negative factor, not only for manufacturers but also consumers. Also, the British HSBC bank lowered its own assessment of the value of oil in the current year. In addition, the bank revised the terms of the stabilization of the oil market to later. Today, investors will pay their attention to U.S. API Weekly Crude Oil Stock (will be published at 21:35 (GMT)).
Resistance: 31.30, 33.34, 35.56
Support: 29.34, 27.53, 27.00