Daily Market Review — 02/02/2016
The pair showed an upward trend during yesterday’s trading day, due to the weakness of the Japanese currency. Last Friday the Bank of Japan took the unprecedented decision to cut interest rates on deposits to negative values. The publication of the Japanese Manufacturing PMI, which was worse than the average forecast, had an impact on the market. A similar report in the final reading was published for France, Germany and the Eurozone. It is worth noting that the latest figures came out better than the average forecast, although were slightly lower than for the previous period. Today, the dynamics of trade may be influenced by the publication of data on Germany’s Unemployment Rate at 08:55 (GMT) and the Eurozone Unemployment Rate at 10:00 (GMT).
Resistance: 132.31, 133.16, 133.79
Support: 130.92, 129.99, 129.07
The New Zealand currency strengthened significantly against the US dollar during yesterday’s trading day. Such dynamics were caused by the weak U.S. economic statistics. For example, personal income rose more than experts’ forecasts, while personal spending showed zero change. The U.S. Real personal consumption also showed a zero change. Meanwhile, manufacturing activity in the US economy continues to shrink. Today, the dynamics of trade will depend on the publication of data on the labor market in New Zealand, which is scheduled for 21:45 (GMT).
Resistance: 0.6541, 0.6566, 0.6587
Support: 0.6512, 0.6490, 0.6472
Major US stock indexes showed mixed trends yesterday, due to weak U.S. economic statistics, and to negative data on Chinese economy. Thus, the Chinese Manufacturing PMI came out lower than expected and lower than in the previous period, pointing to the ongoing problems in the national economy. The manufacturing in China showed decline for the sixth consecutive month. A similar trend was shown by the index of business activity in the US manufacturing sector. The pressure on the stock markets also provided weak data on U.S. Real Personal Consumption, showing zero changed. Meanwhile, the Fed Vice Chairman Stanley Fischer’s statement supported the market. He said that the American regulator does not yet know what will be at the meeting in March, and it will depend entirely on the incoming economic statistics. Today, the dynamics of the U.S. stock markets will depend on the quarterly reports of companies, as well as the general mood of investors.
Resistance: 16387.62, 16526.56, 16641.33
Support: 16206.40, 16077.53, 15870.14
Light Sweet Crude Oil Futures
Yesterday the quotes of “black gold” fell significantly, approaching close to the level of $31 per barrel. This was due to the news that major oil-producing countries will make a decision to cut the volume of production in order to stabilize prices. The Gulf countries (members of the OPEC) have flatly refused to hold an emergency meeting in February. Their representatives said that they are preparing for the scheduled meeting in June, because it is not clear how the return of Iran to the world market will affect the price dynamics. Iran’s oil minister has said that his country may soon increase production by 1 million barrels per day. Some pressure on the price of oil provided weak statistics from China, which is the second largest oil consumer after the United States. Today, investors should pay attention to a report from the US Institute of Petroleum, which will be published at 21:35 (GMT).
Resistance: 31.71, 33.30, 34.76
Support: 30.77, 29.21, 27.84