Daily Market Review — 26/08/2015

Daily Market Review — 26/08/2015

Market Participants Will Be Focused On the US Durable Goods Orders Statistics

Forex

GBP/USD

GBPUSD

During yesterday’s trading session the British currency fell considerably against the US counterpart. It should be noted, the US dollar strengthened yesterday against the entire range of currencies after a collapse on Tuesday amid the falling Chinese stock market. Economic statistics on the US economy were published yesterday. According to the data, new home sales rose last month to a level of 507,000, slightly below analysts’ forecasts at 510,000. And with this, consumers feel more confident this month. The indicator of consumer confidence rose to a level of 101.5, well above the average forecast at the level of 93.4. Market participants’ attention will be focused today on the publication of data on durable goods orders in the United States, scheduled for 12:30 (GMT). In addition, investors will be watching the speech of the Fed member Dudley at 14:00 (GMT).

Resistance: 1.5721, 1.5801, 1.5834

Support: 1.5679, 1.5633, 1.5603

 

USD/CAD

USDCAD

The Canadian currency fell significantly against the US dollar yesterday. The reason for such dynamics was concerns over the further decline in commodity prices. Also yesterday the PBOC lowered the benchmark interest rate by 25 basis points amid concerns over a slowdown in the national economy, which has led to volatility in the markets on Monday. In addition, oil prices, the main article of Canadian exports, are at 6-years lows below $40 per barrel. Also, the Canadian currency is pressured by the decrease in investor’s risk appetite. Today’s dynamic of the pair will be affected by external factors such as oil prices, as well as statistics on the US, scheduled for 12:30 (GMT) and 14:00 (GMT).

Resistance: 1.3352, 1.3380, 1.3410

Support: 1.3292, 1.3174, 1.3126

 

Stock Market

DAX Futures

DAX

After the sell-off on Monday, caused by fears about the negative impact of the slowdown in Chinese economy, major stock markets went up yesterday. Yesterday’s trading dynamics was influenced by reports of continuing measures by the Chinese government to support the national stock market. The PBOC poured into the banking system about 150 billion yuan. In addition, the Chinese regulator has lowered its key interest rate by 25 basis points in order to increase availability of credits for the national economy. Some influence also had data from the German institute IFO, showing that the business climate and the conditions in Germany are at high levels.

Resistance: 10183.58, 10437.14, 10656.31

Support: 9769.75, 9543.24, 9324.06

 

Commodities

GOLD

Gold

During yesterday’s trading session precious metal quotations essentially plunged, which was caused by a general strengthening of the US currency, as well as the decision of the Chinese National Bank to lower key interest rates by 25 basis points. At the same time the price of gold fell below the level at $1140.00 per ounce. The strengthening of the US dollar was supported by the positive statistics from the US. And with that, the demand for gold is supported by fears of shifting the timing of the first rate hike by the US Federal Reserve. The delay in the rate increase favors investors in gold.

Resistance: 1146.29, 1156.46, 1169.69

Support: 1133.03, 1126.47, 1119.13