Daily Market Review — 29/12/2015
American Assets Will Be the Main Event Today
Yesterday’s trading on the pair passed without any dynamics before New Year’s holidays. There is a decrease in trading volumes in the market, as result it reduced liquidity and increased volatility. Data on the index of business activity from the ‘Federal Reserve Bank of Dallas’, which was better than the average experts’ forecast, made some influence. However, the pair did not react to the statement made by member of the Executive Board of the European Central Bank; ‘Yves Mersch’ that the European regulator has a set of tools to further easing in the current monetary policy.
Besides, he added that the program of quantitative easing will continue as long as it requires, for the current market conditions. Today, the dynamics of the couple may have some impact data on the index of house prices from the S&P/Case-Shiller and consumer confidence indicator, which will be published at 14:00 (GMT) and 15:00 (GMT), respectively.
Resistance: 1,1010, 1,1062, 1,1139
Support: 1,0939, 1,0869, 1,0801
Yesterday, the pair renewed its peak this year at 72.5 Russian rubles per US dollar. Such dynamics was caused by the start of the next drop of oil prices, and as we know Russian currency is highly dependent on the oil price’s dynamics. It should be noted that the period of tax payments, which could support the ruble, came to an end. If the pair manages to consolidate above the level of 72.5 rubles per dollar, the next target will be the highest of last year at 78-80 rubles per dollar as technical resistance levels to these figures does not exist. The current dynamics of pair will depend entirely on the counterpart dynamics in commodity markets and the general investors’ attitude towards the Russian currency.
Resistance: 72,5316, 75,5000, 78,2281
Support: 709642, 70,0667, 69,4473
Main US stock indexes closed in the red yesterday, because of oil quotations falling. Yesterday, oil quotes are back to at least the past 11 years amid oversupply in the world market. Some analysts believe the market reaction is excessive. It is worth to say, that the majority of investors are inclined to close their positions before the New Year holidays. Data on the index of business activity from the Federal Reserve Bank of Dallas had some influence yesterday. Today’s trading on the US stock markets may be affected by the publication of data on the housing market and the US consumer confidence indicator, which is scheduled for the second half of the trading day.
Resistance: 2057,64, 2071,99, 2088,76
Support: 2045,52, 2031,54, 2019,05
Prices for precious metals at yesterday’s auction fell back 10 dollars, helped by closing positions before the New Year. It is worth noting that gold prices this year have fallen by more than 10%, which was due to the expectation of rate hikes by the US Federal Reserve; although prices rose slightly after the adoption of this decision. Yet the gold remains under pressure as investors expect further rate hikes by the US regulator. Today, statistics from American economic sources that will be published (during US trading hours,) can influence market dynamics accordingly.
Resistance: 1076,68, 1081,51, 1088,76
Support: 1067,95, 1062,28, 1058,39