Daily Market Review — 30/03/2016
Germany consumer price index will be the main event today
Yesterday the pair was in downtrend, which was due to a correction after rising in the previous week. However, some support for the Euro provided data on Eurozone M3 money supply and private sector loans, which were better than the average forecast of experts. Today, the impact on the pair’s dynamics may provide a publication of Eurozone services sentiment at 09:00 (GMT). Also, investors will pay attention to data consumer price index in Germany, which will be presented at 12:00 (GMT). Meanwhile, tomorrow will be the same report for Eurozone.
Resistance: 0.7871, 0.7910, 0.7944
Support: 0.7829, 0.7792, 0.7756
In the first half of yesterday’s trading day, the pair showed growth due to the strengthening of the US currency. However, after Janet Yellen’s speech the pair changed the dynamics. Janet Yellen noted that there are external risks for the US economy, so the pace of rate hikes will be slower. These statements refuted the views of some leaders that the rate may be increased already at the meeting in April. This put pressure on the US dollar on a broad market spectrum. Today, the dynamics of the pair will depend on U.S. ADP nonfarm employment change report, which will be presented at 12:15 (GMT). It should be noted that this report will be published two days before the publication of NFP.
Resistance: 0.9721, 0.9800, 0.9851
Support: 0.9650, 0.9590, 0.9543
Major stock indices in Europe showed slight growth helped by the expectation of quarterly reporting start in the region. Fed Chairman Janet Yellen’s speech influenced the market. Investors are trying to figure out how likely are the chances for a rate hike at the next meeting. At the same time, the head of the American regulator has once again made it clear that the pace of rate hikes will be slower. Let us remind that low cost of borrowing, supports stock markets. Today, the dynamics of trade will depend on Germany consumer price index at 12:00 (GMT).
Resistance: 6085.96, 6114.60, 6149.47
Support: 6008.74, 5975.11, 5942.73
Light Sweet Crude Oil Futures
Quotations of the “black gold” yesterday showed negative dynamics. After February’s multi year lows, the price of oil has risen by approximately 45%. However, investors are afraid that this rebound was excessive, since the market is still dominated by an excess of supply over demand. Meanwhile, in the second half of yesterday’s trading day quotes showed some growth, helped by a drop in the US currency after Fed Chairman’s speech. In addition, according to the US Institute of Petroleum an inventory increased by 2.6 million barrels and the forecast was 2.6 million. This is much lower than the previous value, which pointed to the increase of inventory by more than 9 million barrels. Today, the dynamics of trade will depend on publication of official data on U.S. crude oil inventories at 14:30 (GMT).
Resistance: 38.82, 39.41, 40.10
Support: 37.87, 37.27, 36.50