Daily Market Review — 26/05/2016
Traders will pay attention to US durable goods orders today
The British pound showed significant growth, once again spurred on by the new Brexit poll’s results. According to the data the majority of British citizens believe the country should stay in the EU. Additionally, Bank of England Governor Mark Carney’s recent statement further assisted the pound. He indicated that the BoE will ensure price stability, support the national currency exchange rate and inflation. Today’s trading dynamics will probably be impacted by UK GDP data and US Durable Goods Orders, scheduled for 8:30 and 12:30 GMT respectively.
Resistance: 1.4770, 1.4855, 1.4938
Support: 1.4659, 1.4604, 1.4564
Yesterday, the pair showed an upwards trend, with last week’s FOMC Meeting Minutes still propping up the US currency. Nevertheless, weaker than expected data on US business activity put some pressure on the pair. Although the result (51.2) was above 50, indicating expansion, it was still significantly lower than the desired 53.1. Various US statistics will affect the pair today starting at 12:30 GMT. The pair will additionally be impacted at 23:30 GMT with the results of Japan’s Consumer Price Index GMT.
Resistance: 110.44, 110.87, 111.49
Support: 109.10, 108.46, 107.63
Major European stock indexes rose yesterday and showed the biggest two-day gain in three months. Sentiments regarding the US economy’s stability provided significant stability for the markets. Additionally, a weaker euro assisted major EU exporters, further pushing up the markets. Furthermore, growth in the commodity markets led to a rise in many energy companies’ share prices. Lastly, German IFO data was better than what was originally predicted, causing the markets to rise even more. Today, UK GDP data scheduled for 8:30 GMT should impact the FTSE 100.
Resistance: 6270.97, 6294.01, 6325.14
Support: 6195.62, 6160.75, 6135.84
Crude Oil Futures
Crude oil prices rose by one percent yesterday thanks to the US Department of Energy’s crude stock report (stocks fell by 4.2 million barrels as opposed to the predicted 2.5 million barrels). Additionally, the head of OPEC noted that although crude oil is trading at a fair price it should rise to $65. The next OPEC meeting is scheduled for June 2.
Resistance: 50.00, 50.71, 51.43
Support: 49.33, 48.60, 47.64