Daily Market Review — 28/04/2016
LinkedIn is scheduled to report its earnings after the market closes and the U.S. will announce its Q1 GDP findings. Market volatility is expected.
Yesterday, the pair showed mixed results as the market anxiously awaited for the results of the U.S. Federal Reserve interest rate decision. In the end, as most analysts forecasted, the rates remained unchanged. Additionally, Fed Chairwoman, Janet Yellen indicated that there will be no rush to institute a rate hike in the near future. However, at the same time, Yellen made no mention about any uncertainties pertaining to the global economy. Meanwhile, earlier this morning the Bank of Japan announced its interest rate decision. Despite dramatically lower inflation, the bank refused to enact any changes. However, at the same time it signaled that if necessary, it will be done at a moment’s notice. Due to this, the yen strengthened sharply against the USD. Today’s trading dynamics will ultimately depend on today’s U.S. GDP findings, scheduled for 12:30 GMT.
Resistance: 109.50, 109.90, 110.30
Support: 108.50, 108.10, 107.65
Yesterday the euro rose slightly against the dollar thanks to a better than expected German Consumer Climate report. Additionally, the euro rose as the Fed decided to maintain the current interest rate levels and indicated that there will not be another hike for a while. Today’s trading dynamics will be dependent upon German market labor data at 7:55 GMT. As Germany is the largest economy in the Eurozone, this report should bear significant weight. Traders should also pay attention the German CPI report scheduled for 12:00 GMT. Lastly, investors should watch out for U.S. GDP report, which is scheduled for 12:30 GMT.
Resistance: 1.1354, 1.1381, 1.1410
Support: 1.1295, 1.1268, 1.1240
Facebook Inc. (FB)
Yesterday, Facebook published its quarterly report. The social network giant beat expectations, posting an earnings per share of $0.77, 15 cents better than the anticipate $0.62. It’s revenue also impressed, hitting $5.38, better than the expected $5.24. At the conclusion of yesterday’s session company shares rose to $108.90 and currently it is listed at 118.78 in after-hours trading. Today, Facebook probably, will probably find resistance at approximately 110,20-111,00. Lastly, LinkedIn is scheduled to report its earnings after the market closes. Volatility on the stock is to be expected during today’s session.
Resistance: 110.20, 111.60, 112.70
Support: 106.00, 104.30, 102.70
Yesterday, prices rose in anticipation of the Fed’s interest rate decision. Although gold jumped after the Fed left the rates unchanged, demand overall should be capped as demand from major gold consumers, India and China is heavily reduced. Today’s trading dynamics will significantly depend on the results of the U.S. GDP report, scheduled for 12:30 GMT. Most analysts believe GDP levels will drop as they traditionally do in the first quarter.
Resistance: 1252.67, 1257.73, 1262.37
Support: 1238.36, 1232.60, 1227.25