Daily Market Review — 01/02/2016
On Friday, European currency fell significantly against the US dollar. This trend was caused by technical factors and publications of economic statistics. German Retail Sales unexpectedly fell in December, but the Eurozone Consumer Price Index rose more than expected. As for US statistics, the GDP came out at 0.7% (forecast – 0.8%). Meanwhile, U.S. Real Consumer Spending showed its highest growth in the last ten years. Today, reports on U.S. Personal Income, Personal Spending, and U.S. Core PCE Price Index will be important and are scheduled for 13:30 (GMT).
Resistance: 1.0869, 1.0895, 1.0925
Support: 1.0814, 1.0788, 1.0762
The Japanese yen fell far during Friday’s session after the Bank of Japan’s announcement that deposits was charged at minus 0.1% for the first time in its history. The head of the Japanese regulator said that the program of quantitative easing may be revised at any time. However, this morning the Australian dollar reacted to the Chinese Manufacturing PMI, which in January amounted to 49.4 against the average forecast at the level of 49.6. This situation points to the ongoing problems in the Chinese economy. At the same time, currencies of Chinese trading partners are under pressure now – Australia is one of China’s largest trading partners.
Resistance: 86.35, 87.25, 88.07
Support: 84.78, 84.18, 83.38
European stock markets closed Friday’s session in the green zone, helped by the Bank of Japan’s additional stimulus measures. The Bank of Japan’s announcement that deposits was charged at minus 0.1% in order to stimulate the national economy. Some support for the European stock markets provided statistics on inflation in the Eurozone, which was better than the average forecasts. Also, US GDP data was the focus of investors, showing a sharp slowdown in the fourth quarter. Today, the dynamics of trade will depend on reports on the U.S. Personal Income and Personal Spending, which will be published at 13:30 (GMT).
Resistance: 9937.27, 10116.17, 10279.51
Support: 9740.22, 9527.61, 9260.37
The precious metal rose moderately during Friday’s trading session, despite the general strengthening of the US dollar after the publication of the US GDP. Experts said it was due to the weakness of the Japanese yen. The fact that US Fed postponed monetary tightening, after the data showed sharp slowdown in the US economy in the fourth quarter provided some support to gold. According to most analysts’, expectations of a rate hike by the Fed declined substantially this year, which will provide further support to the gold market.
Resistance: 1127.79, 1136.29, 1146.45
Support: 1117.44, 1108.46, 1097.59