Daily Market Review – 30/12/2015
Main Event Today – US and the Eurozone Economy Publications
The pair showed a downward trend yesterday. There were no important economic statistics, so market participants turned their attention to the discrepancy of the two central banks’ monetary policy. Moreover, the risk of the UK leaving the European Union still exists and so British currency is under pressure. Next Spring, this issue will be the main event for the British economy. Meanwhile, the markets expect that the British regulator will start raising rents, with them increasing steadily until January 2017. These increases will be slower than similar moves by the US Federal Reserve. It should be noted that trading volumes will be low today, as the period between Christmas and New Years is generally a low trading period. Today, the dynamics of the pair may be influenced by data published on house price indexes from Nationwide at 07:00 (GMT). Also, market participants will focus on the unfinished property sale in the United States, the publication of which is scheduled for 15:00 (GMT).
Resistance: 1,4899, 1,4955, 1,5025
Support: 1,4782, 1,4689, 1,4566
The main influence for the fall of the Euro was the drop in the main currency pair − EUR/USD. This led market participants to profit on long positions on the Euro, held since the ECB meeting on 3rd December. Today data will be published on the change in the volume of private sector credit and the monetary aggregate M3 at 09:00 (GMT), may have some impact on the pair. It should be noted that tomorrow will be a short trading day in most European countries as celebrations for New Year’s Eve will begin.
Resistance: 131,88, 132,41, 132,78
Support: 131,34, 131,02, 130,61
Major Stock Indexes in Europe rose during yesterday’s trading while retaining their monthly loss, caused by the closure of part of the position before New Years. Meanwhile, investors focused on the situation in the commodity markets, where at the moment there is some weakness. They also focused on the first rate hike by the US Federal Reserve. Typically, at the end of the year the stock markets rise, but this year, this tradition was broken amid concerns from investors about the sluggish global economy. Data on the US consumer confidence indicator, which came out slightly better than the average forecast of analysts, had some impact yesterday. Today, the dynamics of trading may be influenced by the publication of data on the volume of mortgage lending in the Euro area, as well as the unfinished transaction for the sale of housing in the US, which will be presented during the course of the day.
Resistance: 6271,85, 6289,85, 6315,44
Support: 6240,58, 6216,89, 6193,20
Light Sweet Crude Oil Futures
Quotes of “Black Gold” rose more than 1% during the first half of yesterday’s trading due to the closure of short positions on the asset by investors – towards the end of the year investors prefer to refrain from opening new positions. The price of oil has had some support because of difficult weather conditions in the United States, leading to the disruption of supplies. Meanwhile, the oversupply in the world market is keeping prices at the minimum. However, after the publication of data on stocks of crude oil from the US Institute of Petroleum, “Black Gold” has lost a number of positions. According to data presented yesterday, stocks rose last week by 2.9 million barrels, which in turn put pressure on prices. Today, the focus of investors will be on a similar report from the US Department of Energy, which will be presented at 15:30 (GMT).
Resistance: 37,36, 37,87, 38,57
Support: 36,63, 35,74, 35,07