Daily Market Review — 29/02/2016
Eurozone inflation data will be the main event today
At Friday’s session, euro fell significantly against the US currency. This trend was due to an impressive US economic data. Thus, the US GDP for the fourth quarter in the second assessment increased by 1% versus expectations of experts at the level of 0.4%. In addition, personal income and spending also showed a positive trend. However, one of the main indicators – Core PCE price index rose by 0.3% in monthly terms and by 1.7% in annual terms. Let us remind that PCE price index is the main indicator for US inflation. Today, the dynamics of the pair may depend on the publication of data on retail sales in Germany at 07:00 (GMT). Also, 10:00 (GMT) the first assessment of the consumer price index in the euro area will be presented.
Resistance: 1.0959, 1.1003, 1.1067
Support: 1.0907, 1.0858, 1.0809
The British currency again was under the pressure during Friday’s trading day. This was due to the positive statistics on the US economy. GDP figures for the fourth quarter exceeded average forecasts of experts. In addition, the rate of personal income and spending of Americans rose in January more than most analysts expected. Today, the dynamics of the pair will depend on publication of U.K. BoE Consumer Credit at 09:30 (GMT).Also, the focus of market participants will be on U.S. Chicago PMI, which will be published at 14:45 (GMT).
Resistance: 1.3906, 1.4043, 1.4166
Support: 1.3839, 1.3724, 1.3540
Major US stock indexes closed in the red on Friday. Investors were focused on data on US GDP for the fourth quarter of last year. Thus, the fall of the American GDP was less than it was expected. Also, investors paid a lot of attention to the G20 summit, which was held last Friday. There were no essential measures taken during the meeting. This put some pressure on stock markets. Today’s dynamics will depend entirely on the mood of investors. Some effect can provide US data that will be presented during the day.
Resistance: 1943.15, 1952.59, 1968.24
Support: 1923.46, 1910.78, 1898.37
Light Sweet Crude Oil Futures
Quotations of “black gold” rose significantly, reaching a seven-week high at the same time. This trend was due to larger-than-expected growth in US GDP for the fourth quarter, which will further contribute to the growth in demand for oil. In addition, investors wait for production cuts decision which could be made during the meeting of oil-producing countries in March. Meanwhile, Iran’s representatives once again announced that the country will increase production until it reaches a volume of 4 million barrels per day. This lack of coordination between the major oil-producing countries in the near future will put pressure on oil.
Resistance: 33.46, 34.14, 35.10
Support: 32.35, 31.46, 30.61