Daily Market Review ― 29/09/2015
Consumer Price Index in Germany and Industrial Product Price Index in Canada Will Be In Focus of Market Participants
The European single currency significantly strengthened against the US dollar at the end of yesterday’s trading session. This was caused by a mixed statistics on Personal Income and Spending in the US, as well as the PCE Price Index. By the way, the latter is a key indicator for the Fed on inflation during the decision on interest rates. The EUR/USD also grew on statements of some members of the Fed’s. Today, the focus of market participants will be drawn to the publication of Consumer Confidence, Economic Sentiment Index, Business Climate Indicator and Industrial Confidence in the Eurozone, scheduled for 09:00 (GMT). At 12:00 (GMT) Germany will release data on CPI for the current month. Also, pay attention to the indicator of Consumer Confidence in US consumers, scheduled for 14:00 (GMT).
Resistance: 1.1297, 1.1329, 1.1372
Support: 1.1215, 1.1145, 1.1104
On yesterday’s trading the pair showed mixed trends, and with it, the session ended in favor of the US currency. Despite the mixed statistics on Personal Income and Spending in the US economy, the growth of the US dollar was supported by statements of some members of the Fed, who expressed confidence that rates will be raised before the end of this year. In addition, the Canadian currency is pressured by drop in oil prices. Today, the dynamics of the pair can be influenced by the economic news from the United States and across Canada. At 12:30 (GMT) Canada will release data on the Producer Price Index and at 14:00 (GMT) will be published US Consumer Confidence Index.
Resistance: 1.3416, 1.3465, 1.3500
Support: 1.3354, 1.3290, 1.3230
During yesterday’s trading session the major US stock markets lost significantly. This was caused by increased probability of a rate hike by the Fed in the near future after the release of positive statistics on Personal Spending in the US. Recall that the US Personal Spending accounts for more than 2/3 of the country’s GDP. It should be added that the Fed member Dudley said that there is a high likelihood that rates could be raised at the next meeting, scheduled for October. Today, the dynamics of stock markets can be influenced by data on US Consumer Confidence, scheduled for 14:00 (GMT).
Resistance: 15909.36, 16059.34, 16237.64
Support: 15788.14, 15716.84, 15619.27
During yesterday’s trading price of gold dropped significantly. The dynamics of prices for precious metal continues experience pressure from the strengthening of the US currency. This was caused by the publication on Friday of the final estimate of GDP, and yesterday’s publication of data on Personal Spending and Income. In addition, investors continue to analyze the last week’s speeches of the Fed Chairwoman Janet Yellen. She noted that the possibility of a rate hike later this year is still in place. The same idea was also expressed by other Fed members yesterday. Amid anticipation of the rate hike by the US Federal Reserve, gold becomes unattractive to investors. Gold prices remain under pressure exactly for this reason.
Resistance: 1136.45, 1148.37, 1156.50
Support: 1123.93, 1115.66, 1110.24