Daily Market Review — 09/09/2015

Daily Market Review — 09/09/2015

Interest Rates Decisions in Canada and New Zealand Will Be In Focus Today

Forex

USD/CAD

USDCAD

During yesterday’s trading session the pair traded mostly with a negative trend. The Canadian dollar strengthened against its US counterpart amid rising oil prices. Recall that the Canadian dollar is the commodity currency, so its rate is very dependent on the dynamics of oil prices. Its price rose in yesterday’s trading due to reports that the Chinese government introduced additional measures to support the domestic stock market. The current dynamics of the pair will depend entirely on incoming data on the economy of Canada. For example, at 12:15 (GMT) the number of housing starts will be released in Canada. And the number of building permits will be published 15 minutes later. The most important event of the day for the Canadian currency will certainly be a decision on the basic interest rate at 14:00 (GMT), and BOC Rate Statement.

Resistance: 1.3243, 1.3288, 1.3323

Support: 1.3165, 1.3115, 1.3058

 

NZD/USD

NZDUSD

The pair has been demonstrating strong growth for the second day in a row, which is caused by the absence of important economic statistics from New Zealand and the United States. Today’s positive trend is caused mainly by positive news from China, where all stock markets are showing strong growth. Yesterday the Chinese regulator introduced new restrictions on trading in the stock markets in order to protect the domestic securities market of another sell-off. As a result, in case of a fall of the main stock index by 5%, trading will be halted for 30 minutes. In the case of the fall of the index by 7% or more, trading will be stopped till the end of the day. These messages will certainly support the New Zealand currency, as it’s the country’s biggest trading partner of China.

Resistance: 0.6415, 0.6465, 0.6510

Support: 0.6311, 0.6243, 0.6180

 

Stock Market

FTSE100 Futures

FTSE

During yesterday’s trading session the major stock indices showed strong growth. This was caused by positive statistics from the Eurozone. According to yesterday released data GDP in the Eurozone in the second assessment exceeded analysts’ forecasts. Also, the German trade balance was presented yesterday, which also exceeded analysts’ expectations. In addition, stock markets rose on reports on the improvement of the situation on the stock markets in China, where the government is introducing new restrictive measures to support the domestic economy. At the same time, investors turned their eyes to the Goldman Sachs statement that the Chinese government has spent 1.5 trillion yuan ($ 236 billion) to support the stock market since the downturn that began three months ago. At the end of yesterday’s trading session the British FTSE showed an increase by 1.18%

Resistance: 6250.80, 6346.73, 6482.75

Support: 6005.00, 5935.66, 5756.04

Commodities

GOLD

Gold

Throughout yesterday’s session quotations of precious metal did not change. Short-term prices reached the level of $1126.00 per ounce, but then rolled back down again. Friday’s data on US labor market has not made it clear what is the timing of the first increase of interest rates by the US Federal Reserve. Gold got some support from a general decline of the American currency. According to most analysts, the volume of trading will be limited up to the Fed meeting, which is scheduled for September 16-17. Recall the gold begins to fall in price at a time when rates rise, because it cannot compete with higher-yielding assets.

Resistance: 1130.10, 1136.01, 1142.29

Support: 1117.62, 1109.56, 1105.67

Daily Market Review — 08/09/2015

Daily Market Review — 08/09/2015

Reports on GDP in Japan and Trade Balance in China Are Main Events of the Day

Forex

AUD/USD

AUDUSD

Yesterday the pair was traded in a narrow range in the absence of drivers for particular movements. Recall the US markets were closed yesterday because of the Labor Day. Today’s trading session the pair opened with growth against the background of positive statistics from China. According to the data, the trade balance increased this month to 60.24 billion yuan against analysts’ expectations at the level of 48.2 billion. This suggests that despite the crisis, the Chinese economy continues to be in good condition. As for the Australian economic statistics, the index of business sentiment from the National Australia Bank came in at 1, below analysts’ forecasts at level 4. There is no important statistics today, which could have significant impact on the dynamics of the pair. The only report worth attention is US labor market conditions index, which is scheduled for 14:00 (GMT).

Resistance: 0.6981, 0.7062, 0.7151

Support: 0.6906, 0.6860, 0.6831

 

USD/JPY

USDJPY

Throughout yesterday the pair traded with a rising character. Today, the pair changed direction. Such dynamics were caused by the publication of positive statistics from Japan. According to the data, the GDP in the second quarter declined less than expected by most analysts. Final estimate of GDP was –0.3% against the forecast of –0.4% level. The annualized rate was -1.2% versus analysts’ expectations at -1.8%. Some influence also had Eco Watchers Survey (current and outlook), which came out at the level of 49.3 and 48.2 against the forecast at levels of 51.6 and 51.9 respectively. There is no important news scheduled for the US economy, except Labor Market Conditions Index at 14:00 (GMT).

Resistance: 120.70, 121.41, 122.42

Support: 118.83, 118.23, 116.20

 

Stock Market

S&P500 Futures

S&P500

Yesterday’s trading day, major US stock indexes were experiencing the upward momentum, recovering losses suffered on Friday. Despite yesterday’s drop in the main stock markets of China, the Chinese officials has stated that the period of increased turbulence in the markets comes to an end, and a stabilizing of the yuan is a sign for that. US markets were closed yesterday due to a holiday, so trading volumes were low. There are no important news scheduled today and that could have a significant impact on the dynamics of the broader market.

Resistance: 1958.18, 1992.09, 2028.96

Support: 1908.17, 1867.48, 1830.61

Commodities

Light Sweet Crude Oil

CrudeOil

Yesterday’s trading day quotes of “black gold” spent in a downtrend. The reason for this is another drop in the stock markets in China. In addition, investors are worried about a significant oversupply in the world oil market. Also the sanctions against Iran will be lifted soon, which increase a surplus of oil. It is worth noting that Saudi Arabia yesterday announced budget cuts due to low oil prices. This does not affect health and education, as well as structural projects. Due to the decrease in demand, OPEC lowered the selling price of oil for consumers in US, Europe and Asia. It is also worth adding that, despite the fact that last week the number of active drilling rigs decreased by 13 units, oil continues to trade with a negative trend.

Resistance: 45.85, 47.19, 48.37

Support: 43.39, 41.79, 40.47

Daily Market Review — 07/09/2015

Daily Market Review — 07/09/2015

Investors Will Be Focused On German Industrial Production Statistics

Forex

EUR/USD

EURUSD

The most important report on the US labor market was published last Friday. Prior to the release of the news the pair traded in a narrow range. Upon the release the pair changed trends, since the data turned out to be mixed. The unemployment rate fell to 5.1% against the average forecast at the level of 5.2%. Wages grew by 0.3% against analysts’ expectations of 0.2%. But the NFP indicator was 173K against analysts’ expectations at the level of 220K. We’d like to point out that the NFP for August is usually falls short with forecast. There is no economic news in the US scheduled for today, since the United States is celebrating Labor Day. All market participants’ attention will be focused today on industrial production index in Germany, which will be released at 06:00 (GMT).

Resistance: 1.1243, 1.1332, 1.1396

Support: 1.1086, 1.1017, 1.0975

 

GBP/USD

GBPUSD

Throughout last week the pair traded with a negative trend. Last Friday wasn’t an exception. Even though the there was no economic data on the British economy, the pair continued to fall on Friday. The reason for this lies in negative statistics on the UK economy, which was published last week. On the contrary, statistics on the US economy gives hope for tightening of monetary policy at the next Fed meeting in September 16-17. Today the economic calendar for the US economy as well as for British is empty, so the pair will react, most likely on technical signals. In addition, it is likely that the pair will experience correction today form the last week fall.

Resistance: 1.5271, 1.5332, 1.5407

Support: 1.5142, 1.5097, 1.5056

 

Stock Market

DAX Futures

DAX

During the Friday session, major European stock indices fell sharply, losing all the gains made in the previous two days. Such dynamics were caused by concerns over global economic growth, as well as the probable increase of interest rates in the United States, which become more likely after Friday’s report on the labor market. Recall, on Thursday strong support for major European stock markets had a speech of the ECB President Mario Draghi. He drew attention of investors that the bank will continue its quantity easing program, though ECB lowered the forecast for GDP growth in the 2015-2017. Today’s trading session promises to be quiet, as the economic calendar is almost empty. Moreover, the United States is celebrating the Labor Day.

Resistance: 10378.68, 10654.15, 10810.00

Support: 9882.12, 9715.39, 9316.69

Commodities

GOLD

Gold

During the Friday’s session the gold quotes were in a narrow range in the expectation of important statistics on the US labor market. After the publication of the data, gold showed a mixed reaction, rising to the level of $1130.00 per ounce, and then also rapidly sinking to the level of $1117.00. It should be noted that the presented data on unemployment in the United States have increased uncertainty about the future steps by the US Federal Reserve. Recall that this was the last major report before the meeting, to be held on September 16-17. About 30% of the analysts predict that the Fed could decide tighten monetary policy on its September meeting, for the first time since 2008.

Resistance: 1130.10, 1136.01, 1142.29

Support: 1117.62, 1109.56, 1105.67

Daily Market Review — 03/09/2015

Daily Market Review — 03/09/2015

Markets Wait For ECB Decision

Forex

EUR/USD

EURUSD

The pair spent yesterday’s trading session in a negative trend. During yesterday’s European session the producer price index in the euro area was published, which was exactly in line with analysts’ forecasts. As market approaching Friday, the day of the NFP release, trades become less volatile. Today, market participants’ attention will be drawn to the final data on the Services PMI in France, Germany and the Eurozone. At 09:00 (GMT) markets will be focused on the retail sales data release in the Eurozone. But the main event for the European single currency will certainly be the announcement of the ECB’s decision on key interest rates, which will be followed by a press conference of the head of the bank, scheduled for 11:45 (GMT) and 12:00 (GMT), respectively. As to the US economy, the initial jobless claims report will be released today at 12:30 (GMT).

Resistance: 1.1263, 1.1332, 1.1396

Support: 1.1155, 1.1079, 1.1017

 

AUDUSD

AUDUSD

Yesterday the pair opened trading day with drop against the publication of GDP data for Australia. According to published statistics, GDP grew, but at a slower pace than expected. Today, as the pair began with negative dynamics. Early in the morning the statistics on retail sales in Australia were published. Retail sales fell last month by 0.1% against the average forecast at + 0.4%. The deficit of the trade balance declined slightly, showing –2.46 billion AUD against the average forecast of –3.1 billion. This put pressure on the Australian currency. Today’s attention of the players will be focused on the US initial jobless claims report at 12:30 (GMT).

Resistance: 0.7065, 0.7151, 0.7203

Support: 0.6982, 0.6945, 0.6915

 

Stock Market

DAX Futures

DAX

Throughout yesterday’s session the main European stock markets recovered losses suffered the day before against the backdrop of clear signs of slowing of the Chinese economy. Some support also came from the PPC in the Eurozone, as well as the index of business activity in the UK construction industry. The first indicator came out in line with forecasts, but the second, despite showing an increase, was at a level below the forecasted values. Today, the dynamics of stock indices may be influenced by the Services PMI reports in France, Germany and the Eurozone as a whole. Investors are eagerly awaiting Friday’s employment report in the US, as published data are more likely to allow them to predict timing of the first rate hike in the United States.

Resistance: 10313.44, 106654.15, 10810.00

Support: 9882.12, 9715.39, 9316.69

Commodities

GOLD

Gold

During yesterday’s trading session, gold prices were pressured by the recovery of stock markets, as well as general strengthening of the US currency. Recently gold was in demand as a safe-haven asset. After the publication of positive statistics on the US economy, gold prices have updated the lows of yesterday’s session. According to data, labor productivity rose to a level of 3.3% against an average forecast of 2.8%. Data on the number of employees from ADP showed a mixed picture. The indicator was 190K against the forecast of 201K. Today, investors will wait for the publication of the initial jobless claims in the United States at 12:30 (GMT), and tomorrow all eyes will be on the government’s employment report, namely NFP.

Resistance: 1142.29, 1147.70, 1156.43

Support: 1129.08, 1120.95, 1109.56

Daily Market Review — 02/09/2015

Daily Market Review — 02/09/2015

Factory Orders & ADP Employment Report Are Main Events of the Day

Forex

EUR/USD

EURUSD

During the first half of yesterday’s trading session the pair showed a positive trend, which was caused by the publication of positive data on the labor market in Germany. According to the data, the unemployment rate remained unchanged at 6.4%. The number of unemployed fell to –7 against the forecast of level 2. The index of manufacturing activity in Germany exceeded forecasts and showed the level of 53.3 against the average forecast of 53,2. These data once again confirmed the status of Germany as the main driver of the economy of the Eurozone. But the manufacturing activity index of the Eurozone turned out to be 52.3, slightly below the forecast of 52.4. The unemployment rate in euro zone fell unexpectedly to 10.9% against an average forecast of 11.1%. Today, the focus of market participants will be on data on the producer price index in the euro area, which is scheduled for 09:00 (GMT). But the main news of today’s trading session will be the ADP employment report at 12:15 (GMT). Also today, the report on factory orders in the US will be published. It is worth noting that the market is cautious as players expect a government report on the NFP this Friday.

Resistance: 1.1332, 1.1396, 1.1560

Support: 1.1233, 1.1177, 1.1079

 

USD/RUR

USDRUR

After the growth of the Russian currency against the US dollar, which began at the beginning of last week, the ruble demonstrated negative dynamics during yesterday’s trading. Recall that the value of the Russian ruble is very closely linked with quotations on commodity markets and especially oil prices. As we saw last week strong recovery in quotations of “black gold” has pushed the ruble to rise. It is worth noting that this dynamic is likely to have a speculative nature and lacked a fundamental reason. Yesterday the oil market experienced a corrective pullback, which put pressure on the Russian currency. Prospects for the ruble remain negative in the light of the continued slowdown of the Chinese economy, which is an important strategic trade partner of the Russian Federation.

Resistance: 66.3736, 67.6244, 69.4630

Support: 64.2807, 63.3006, 62.2477

 

Stock Market

FTSE Futures

FTSE

Yesterday, the major European stock exchanges were under pressure due to negative data on Chinese manufacturing index, which showed levels below the forecast. This suggests that the world’s second largest economy is experiencing a slowdown. Some influence also had the data on unemployment in Germany as well as the index of manufacturing activity in Germany and the Eurozone, which showed the different pace of economic recovery. The index of manufacturing activity in the UK was worse than forecast, which put significant downward pressure on European stocks. Investors are also concerned about the uncertainty regarding the timing of the first rate hike by the US Federal Reserve. Players waiting for Friday, when the NFP report will be presented, which in some way may clarify the situation with the change of monetary policy in the United States.

Resistance: 6105.84, 6250.80, 6400.49

Support: 6005.00, 5935.66, 5756.04

Commodities

Light Sweet Crude Oil

CrudeOil

During yesterday’s session quotes of the “black gold” fell significantly after three days of growth, during which the price of crude oil increased by 27%. The negative trend was caused by concerns about the Chinese economy after the publication of the production index in China, which was worse than analysts’ forecast. Many investors don’t pay much attention to the information published in the OPEC Bulletin, which stated that the organization decided to discuss with other oil exporters the stabilization of prices in the world markets. Yesterday was also published statistics on crude oil inventories by API, which showed that inventories rose last week by 7.6 million barrels. This in turn put pressure on the oil quotations.

Resistance: 45.80, 47.10, 48.79

Support: 43.56, 41.74, 39.87

Daily Market Review — 01/09/2015

Daily Market Review — 01/09/2015

Market Participants Will Be Focusing on Reserve Bank of Australia Decision, Unemployment Rate in Germany and Canadian GDP

Forex

AUD/USD

AUDUSD

During yesterday’s trading the pair showed a negative trend, which was caused by the fall of Chinese main stock index. Recall that Australia is a strategic trading partner of China. Today, the players closely followed the announcement of the results of the meeting of the Reserve Bank of Australia’s main interest rate. As most experts predicted, the central bank left unchanged the parameters of monetary policy, keeping interest rates at 2%. In addition, the RBA Governor Glenn Stevens noted that in the current circumstances, monetary policy should be soft. He also added that he is concerned about the overheating of the housing market. Some influence also had the publication of building permits in Australia. According to the data, they rose by 4.2% against an average forecast of 2.5%. Today, the dynamics of the pair can be affected by the data on the ISM Manufacturing, scheduled for 14:00 (GMT).

Resistance: 0.7151, 0.7203, 0.7248

Support: 0.7081, 0.7049, 0.7018

 

USD/CAD

USDCAD

During the first half of yesterday’s trading session the pair showed growth that was caused by the overall strengthening of the American currency. But, since the beginning of the American session, the Canadian dollar began to rapidly regain the losses it suffered earlier. Such dynamics were caused by the sharp rise in oil prices, which triggers the Canadian currency. At yesterday’s trading quotes of the “black gold” rose sharply against the publication of the OPEC bulletin where the organization stated it is ready to begin negotiations with other oil exporters to stabilize the global oil market. Against this background, many oil market participants began opening long positions on the asset in the hope that this statement will not remain just a promise in words. Today, market participants will follow the publication of Canada’s GDP, which is scheduled for 12:30 (GMT). This indicator will be released on a monthly, quarterly and annual basis.

Resistance: 1.3165, 1.3250, 1.3300

Support: 1.3115, 1.3058, 1.3013

 

Stock Market

DAX Futures

DAX

Yesterday, the major European stock exchanges were trading in narrow ranges. Investors are concerned about the inability of the Chinese government to support the domestic stock market. Also, investors think that the slowdown of the Chinese economy is worse than it was expected. The focus of the players in the stock markets remains on the statements of the Fed members at Jackson Hole Symposium. They repeatedly expressed opinion that the latest situation in the world financial markets will not affect the rate increase this year, although the FOMC will closely follow the developments. Today, the dynamics of stock markets may be influenced by the publication of data on the labor market in Germany, scheduled for 07:55 (GMT).

Resistance: 10313.44, 10654.15, 10810.00

Support: 9903.87, 9715.39, 9316.69

Commodities

GOLD

Gold

Yesterday gold prices fell slightly as investors once again began to analyze the recent strong data on US economic growth. It was also caused by the continuation of the closure of long positions after the rally in August. Recall that in the past month against the backdrop of slowing global economic growth, investors were buying gold as a safe asset. After the economic symposium, investors again began to anticipate a rate hike by the US Federal Reserve at its meeting in September. Special attention will be given to Friday’s government report on new jobs created in the US economy. This report will clarify how likely is the change of the parameters of monetary policy at the September meeting.

Resistance: 1146.19, 1156.43, 1167.97

Support: 1132.70, 1125.30, 1117.52

Daily Market Review — 31/08/2015

Daily Market Review — 31/08/2015

Market Participants Will Be Focused On CPI in the Eurozone

Forex

EUR/USD

EURUSD

In the first half of the trading session on Friday the pair demonstrated a positive trend, which was caused by the publication of positive statistics on the consumer price index in Germany. According to the data, the prices in the current month have not changed compared to the previous. Analysts had expected a drop of 0.1%. In annual terms, prices rose by 0.2%, which met the predicted values. Today a number of economic statistics will be published in the Eurozone. German retail sales will be released at in 06:00 (GMT). Much more interesting report on the consumer price index in the Eurozone will be published at 09:00 (GMT). Investors will closely monitor this data to understand how effective is quantitative easing program, launched by the European Central Bank in March this year.

Resistance: 1.1310, 1.1396, 1.1560

Support: 1.1156, 1.1080, 1.1018

 

AUD/USD

AUDUSD

Last Friday, the pair showed a negative trend against the background of positive statistics from the US personal income and spending, as well as the basic price index for personal consumption expenditures. The opening of the new trading week was also marked by the pair’s fall. Such dynamics were caused by the publication of data on inflation expectations in Australia, which fell this month to a level of 0.1% versus an expected value of 0.2%. Also, new home sales fell last month by 0.4%, lower than the predicted value at +0.5%. It should be noted that the US currency was supported by the Fed members comments, made at the annual Jackson Hole Symposium. The Vice Chairman Stanley Fischer noted that the FOMC aiming to tighten monetary policy, but the outcome of the September meeting is not yet obvious. James Bullard in his speech expressed the hope that the prospects for the US economy are positive enough to raise rates. Today, the dynamics of the pair will be influenced by the publication of the Chicago Purchasing Managers’ Index at 13:45 (GMT).

Resistance: 0.7172, 0.7214, 0.7249

Support: 0.7119, 0.7094, 0.7049

 

Stock Market

DOW Futures

Dow

Most of last week the main US stock markets recovered losses suffered during “Black Monday”. Friday was not an exception. This was caused by US economic data, which showed an improvement in industrial orders, GDP growth in the second quarter, as well as in personal income and spending. The new trading week of US stock markets opened with the fall against the background of negative dynamics in the major Asian stock markets. Today, the dynamics of the indices will be mostly affected by the data from the Chinese economy as well as the situation in the Asian stock markets.

Resistance: 16680.83, 17074.08, 17531.68

Support: 16432.47, 16208.92, 15545.88

Commodities

Light Sweet Crude Oil

CrudeOil

Last Friday quotes for “black gold” increased substantially; this was triggered by the continued closure of speculative short positions on the asset. Against this backdrop, prices have risen to the level of $45 per barrel. However, a new trading week began with the fall of quotations, due to the fall in Asian stock markets. Some influence also has the report of the oil services company Hughes, which pointed out that the number of active rigs in the US increased last week by 2 units. It is also worth noting, that the oversupply in the world market is putting pressure on oil prices.

Resistance: 45.17, 45.83, 46.30

Support: 44.27, 43.43, 42.33

Daily Market Review — 27/08/2015

Daily Market Review — 27/08/2015

Revised US GDP Data Will Be In the Focus Today

Forex

EUR/USD

EURUSD

In yesterday’s trading the pair showed a negative trend, which was caused by the publication of positive statistics on durable goods orders in the United States. The US currency was also supported by the stabilization in global stock markets. According to presented data, durable goods orders turned better than analysts’ expectations, which show the strong recovery by the US economy. Today market participants’ attention will be focused not so much on European statistics but rather the revised estimate of US GDP for the second quarter, which is scheduled for 12:30 (GMT). Market participants will also pay attention to the publication of data on the US labor market, namely the initial jobless claims. Additionally, the Jackson Hole Symposium starts today, and the representatives of the US Federal Reserve will take part in it.

Resistance: 1.1358, 1.1396, 1.1559

Support: 1.1289, 1.1242, 1.1189

 

USD/JPY

USDJPY

During yesterday’s trading session the pair showed mixed trends. It should be noted that the stabilization of world stock markets has led to a decrease in the attractiveness of the Japanese currency as a safe asset. Yesterday the pair was influenced by the data on US durable goods orders, which exceeded analysts’ expectations. The data on the US labor market and the revised estimate of US GDP will be published today at 15:30 (GMT). Market participants’ attention will also be focused on the inflation report in Japan as well as data on unemployment and retail sales. Publication of the above economic statistics scheduled today at 23:30 (GMT).

Resistance: 120.41, 121.27, 121.80

Support: 119.81, 118.43, 116.18

 

Stock Market

S&P500 Futures

SP500

During yesterday’s trading the major US stock indexes recovered the losses from the previous two sessions. This was caused by positive economic statistics on durable goods orders in the US, which showed that the level of optimism among manufacturing companies is growing. Stock indices also got some support by a speech of the Fed member Dudley, saying that the probability of a rate hike in September at this stage looks is less likely than a few weeks ago. Concerns about the economic situation in the country, as well as fears of a global slowdown could force the Fed to delay its decision on raising interest rates.

Resistance: 1949.10, 2007.91, 2046.55

Support: 1922.48, 1875.25, 1830.60

Commodities

Light Sweet Crude Oil

CrudeOil

Oil quotes were trading with mixed trends yesterday. Markets had been waiting for statistics on crude oil inventories from the US Department of Energy. According to the data, inventories fell last week by 5,452 million barrels. The median forecast of analysts anticipated an increase in inventories by 2 million barrels. Such data provided temporary support to oil quotations. And with that, the volume of oil inventories in the US is at multi-year highs. Investors are concerned about the oversupply in the world market. Therefore, most analysts are revising their forecasts for oil prices for the rest of the year.

Resistance: 39.83. 40.45, 41.36

Support: 38.49, 37.76, 37.50

Daily Market Review — 26/08/2015

Daily Market Review — 26/08/2015

Market Participants Will Be Focused On the US Durable Goods Orders Statistics

Forex

GBP/USD

GBPUSD

During yesterday’s trading session the British currency fell considerably against the US counterpart. It should be noted, the US dollar strengthened yesterday against the entire range of currencies after a collapse on Tuesday amid the falling Chinese stock market. Economic statistics on the US economy were published yesterday. According to the data, new home sales rose last month to a level of 507,000, slightly below analysts’ forecasts at 510,000. And with this, consumers feel more confident this month. The indicator of consumer confidence rose to a level of 101.5, well above the average forecast at the level of 93.4. Market participants’ attention will be focused today on the publication of data on durable goods orders in the United States, scheduled for 12:30 (GMT). In addition, investors will be watching the speech of the Fed member Dudley at 14:00 (GMT).

Resistance: 1.5721, 1.5801, 1.5834

Support: 1.5679, 1.5633, 1.5603

 

USD/CAD

USDCAD

The Canadian currency fell significantly against the US dollar yesterday. The reason for such dynamics was concerns over the further decline in commodity prices. Also yesterday the PBOC lowered the benchmark interest rate by 25 basis points amid concerns over a slowdown in the national economy, which has led to volatility in the markets on Monday. In addition, oil prices, the main article of Canadian exports, are at 6-years lows below $40 per barrel. Also, the Canadian currency is pressured by the decrease in investor’s risk appetite. Today’s dynamic of the pair will be affected by external factors such as oil prices, as well as statistics on the US, scheduled for 12:30 (GMT) and 14:00 (GMT).

Resistance: 1.3352, 1.3380, 1.3410

Support: 1.3292, 1.3174, 1.3126

 

Stock Market

DAX Futures

DAX

After the sell-off on Monday, caused by fears about the negative impact of the slowdown in Chinese economy, major stock markets went up yesterday. Yesterday’s trading dynamics was influenced by reports of continuing measures by the Chinese government to support the national stock market. The PBOC poured into the banking system about 150 billion yuan. In addition, the Chinese regulator has lowered its key interest rate by 25 basis points in order to increase availability of credits for the national economy. Some influence also had data from the German institute IFO, showing that the business climate and the conditions in Germany are at high levels.

Resistance: 10183.58, 10437.14, 10656.31

Support: 9769.75, 9543.24, 9324.06

Commodities

GOLD

Gold

During yesterday’s trading session precious metal quotations essentially plunged, which was caused by a general strengthening of the US currency, as well as the decision of the Chinese National Bank to lower key interest rates by 25 basis points. At the same time the price of gold fell below the level at $1140.00 per ounce. The strengthening of the US dollar was supported by the positive statistics from the US. And with that, the demand for gold is supported by fears of shifting the timing of the first rate hike by the US Federal Reserve. The delay in the rate increase favors investors in gold.

Resistance: 1146.29, 1156.46, 1169.69

Support: 1133.03, 1126.47, 1119.13

  • Daily Market Review — 25/08/2015

    Daily Market Review — 25/08/2015

    The Main Event of the Day Is German GDP Report

    Forex

    EUR/USD

    EURUSD

    Yesterday’s trading session was called “Black Monday”. Markets around the world experienced high volatility yesterday, which was caused by another drop in Chinese main stock index, which lost about 8.5%. This is how traders react to a slowdown of the world’s second largest economy, which in turn puts pressure on the currencies of developing countries, as well as commodities. As for the EUR/USD, it rose by 350 points, reaching the level of 1.1700, stopped only by the closing of the long positions for this pair. This reaction is caused by fears that the Fed will shift the timing of the first rate hike from September to December. Today, market participants’ attention will be drawn to the publication of the final data of Germany’s GDP, scheduled for 06:00 (GMT).

    Resistance: 1.1713, 1.1767, 1.1873

    Support: 1.1524, 1.1417, 1.1242

     

    USD/JPY

    USDJPY

    During yesterday’s session the Japanese currency experienced significant strengthening. Although it was influenced by the publication of data on the index of leading indicators in Japan, which went somewhat better than forecast, the main reason was different. The main impact on the dynamics of the pair had information about sell-off in the stock markets in China. Recall that in times of financial and political crises, the Japanese currency is used as a safe-haven asset. Traders also used the Japanese currency as an asset with low interest rates to finance purchases of higher-yielding assets. As a result, the Japanese currency was able to jump to 116.18 yen per USD. Today, market participants will not only monitor the economic statistics from the United States, but also the situation in the Chinese economy.

    Resistance: 120.10, 121.27, 121.80

    Support: 119.09, 118.23, 116.18

     

    Stock Market

    NASDAQ Futures

    NASDAQ

    Yesterday’s the major US stock exchanges experienced an unprecedented fall. Yesterday China’s main stock index fell more than 8%, which was the biggest drop since 2007. Investors around the globe are concerned about the slowdown in the Chinese economy, as well as signs of capital outflow from the country. This, in turn, casts doubt on the prospects for global growth. Besides, the situation in the Chinese stock market is undermining unprecedented measures of the Chinese government to support the domestic economy. Also, do not forget that oil quotes are constantly going down, which negatively affects the stock markets.

    Resistance: 4102.71, 4196.33, 4366.22

    Support: 4027.59, 3995.23, 3906.24

    Commodities

    Light Sweet Crude Oil

    CrudeOil

    During yesterday’s trading session the quotes of “black gold” has once again updated the six-year low, which was due to another fall of the Chinese stock market. This situation has raised fears over a slowdown not only in the Chinese economy, but in the world economy in general. Recall that China is the second largest consumer of raw materials and slowing down its economy may cause a decrease in demand for the asset. In addition, it is worth noting that, according to the oil service company Baker Hughes, the number of active rigs in the US last week have once again increased by 2 units. This steady growth is observed for five consecutive weeks.

    Resistance: 39.03, 39.83, 40.45

    Support: 37.76, 37.50, 37.00