Daily Market Review — 30/05/2016

Daily Market Review — 30/05/2016

Germany’s Consumer Price Index will be today’s main event.

Forex

EUR/USD

EURUSD

The US dollar strengthened significantly against the Euro thanks to a slew of positive statistics and statements from Fed Chairman Janet Yellen. US GDP’s first quarter second estimate came in at 0.8%, better than the 0.5% estimate. Janet Yellen noted that should the economy continue to improve monetary policy will potentially be tightened. Today’s trading dynamics will depend on the outcomes of the Eurozone Business Climate and the German CPI scheduled for 9:00 12:00 GMT respectively.

Resistance: 1.1134, 1.1180, 1.1242
Support: 1.1073, 1.1028, 1.0973

USD/CAD

USDCAD

The pair trended upward during Friday’s trading session thanks to better than expected economic statistics. In a revised estimate the US GDP was slightly better than what was forecasted. Additionally, falling oil prices helped push the pair up as the Canadian dollar has a direct correlation with the price of oil. Furthermore, Janet Yellen’s speech provided some additional support, simply because she did not rule out the possibility a rate hike in the near future. Today’s trading dynamics will depend on the outcome of the Canadian Industrial Product Price Index scheduled for 12:30 GMT. It should be noted that today is Memorial Day, a national US holiday.

Resistance: 1.3110, 1.3152, 1.3186
Support: 1.3052, 1.3004, 1.2959

 

Stock Market

S&P 500 Futures

SP500

Major US stock indexes grew last Friday, with the S&P 500 index recording the biggest weekly gain since March. Solid US GDP data and positive remarks about the US economy from Janet Yellen helped boost the markets. Today’s dynamics will depend on the mood of investors since it is Memorial Day, an official holiday in the US.

Resistance: 2103.36, 2107.34, 2111.49
Support: 2094.90, 2090.86, 2085.68

 

Commodities

GOLD

Gold

Gold prices continued falling during Friday’s trading session, marking the fourth consecutive week that prices have fallen. Additionally, speculation about a future rate hike put further pressure on the precious metal, thanks to remarks from Federal Reserve Chairwoman Janet Yellen.

Resistance: 1212.75, 1230.95, 1243.14
Support: 1198.95, 1190.39, 1182.20

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