Daily Market Review — 28/09/2015
PCE Price Index, Personal Income & Spending Will Be In Focus of Investors Today
The pair continues to trade in a negative trend for the 7th session in a row. On Friday the GBP/USD was pressured by a positive statistics from the US. According to the data, the final estimate of GDP for the second quarter was 3.9% against analysts’ expectations of 3.7%. Services PMI came out exactly as it was predicted by markets. The Reuters/Michigan Consumer Sentiment Index rose to the level of 87.2 against analysts’ expectations at 86.7. Today, the dynamics of the pair may be affected the publication of indicators of Personal Income and Spending, as well as the PCE Price Index at 12:30 (GMT), which is one of the key inflationary indicators for the Fed. Besides that, speeches of four Fed members are scheduled for today.
Resistance: 1.5220, 1.5289, 1.5325
Support: 1.5134, 1.5090, 1.5036
The pair shows a negative trend starting from the second half of the trading day on Friday. Despite a very strong statistical data on the US economy, the Japanese currency was able to rise. This was caused by the fact that the yen is used as a safe-haven asset against the background of the apparent slowdown of the Chinese economy. It should be added that the currencies of developing countries were pressured as well. In addition, market participants don’t expect the Bank of Japan will ease its monetary policy in the near future. This forced investors to buy the Japanese currency. Today, the dynamics of the USD/JPY will be affected by the publication of important economic statistics in the United States at 12:30 (GMT), as well as the speeches of some members of the US Federal Reserve.
Resistance: 120.54, 120.98, 121.24
Support: 119.96, 119.62, 119.22
On Friday’s trading the major US stock indexes closed in different directions. During the trading NASDAQ lost about 1.02%. Such dynamics was caused by the statements of the head of the Fed’s Janet Yellen about the possibility of a rate hike before the end of this year. In addition, the dynamics of stock markets were influenced by the final estimate of the US GDP, which showed that in the second quarter, the US economy grew more than forecast. Today, the markets may be impacted by the statements of some members of the Fed later today.
Resistance: 4220.49, 4247.78, 4282.82
Support: 4183.68, 4147.69, 4118.31
Light Sweet Crude Oil Futures
During Friday’s trading session the quotations of “black gold” showed mixed trends. The data on US GDP added some optimism. And with that, the perspective for the oil market remains negative. Despite the increase in seasonal demand in China, the market is preparing for the lifting of sanctions on Iran. In this case, the market will experience further increase in supply by about 1 million barrels per day. In addition, as it became known recently, the Standard & Poor’s downgraded its forecast for oil prices by an average of $5.
Resistance: 45.71, 46.53, 47.10
Support: 44.49, 44.05, 43.57