Daily Market Review — 08/02/2016
The European currency fell against the US Dollar on Friday after the release of US labor market data. Thus, the number of people employed during the previous month increased by less than it was forecasted. The unemployment rate unexpectedly fell to 4.9% compared to the average forecasts at the level of 5%. Also, average hourly earnings in January grew to 0.5% against the expected level of 0.3%. Meanwhile, factory orders in Germany fell by 0.75% against expectations of a 0.5% decline as of December. These data caused the pair’s drop. It is worth noting that the current dynamics will depend on the data on industrial production in Germany, which were presented at 07:00 (GMT). Also, some influence could provide the publication of Eurozone Sentix investor confidence at 09:30 (GMT).
Resistance: 1.1239, 1.1322, 1.1414
Support: 1.1108, 1.1060, 1.0998
During Friday’s trading day, the pair showed a negative trend. This was due to the expectation of NFP report. After the publication of data on the US labor market, the American currency has strengthened more on a wide range of markets. Despite the drop in the number of jobs created, the growth of unemployment rate and average hourly earnings showed an improvement in the US labor market. Also, some pressure on the British pound provided the deputy head of the Bank of England Ben Broadbent’s statement, he said that British regulator will not hike the rates. Today, the pair will be influenced by Friday’s report, NFP, and the overall dynamics of the American currency.
Resistance: 1.4566, 1.4649, 1.4738
Support: 1.4447, 1.4368, 1.4250
Major US stock indexes fell sharply on Friday, helped by NFP repot (the number of people employed during the previous month decreased). Thus, it was created 151 million new jobs versus an average forecast of 190 million. The good news for investors were: unemployment rate, which declined to 4.9%, and the growth of average hourly earnings, which amounted to 0.5% against expectations of experts at the level of 0.3%. Despite the relatively positive data on the US labor market, investors are concerned about the impact of global financial problems on the US economy. Today, the dynamics of trading will be affected by the price of oil and the general mood of investors.
Resistance: 18890.87, 1907.57, 1927.01
Support: 1865.10, 1848.93, 1835.87
Light Sweet Crude Oil Futures
The strengthening of the American currency at Friday’s session provided a significant pressure on the quotes of “black gold”. Last week was very volatile for the oil market – sometimes the price of oil has changed in the range of 10% during trading day. However, the oil market will stay under the pressure due to serious superabundance of oil on the world market. Meanwhile, as it became known on Thursday, Saudi Arabia lowered its selling prices for European and Asian consumers to protect their markets from other major oil-producing countries. It should be noted that many oil producers are ready to work at a loss, in order to avoid extra costs for conservation and the re-entry of existing wells. Today’s dynamics will entirely depend on the US dollar.
Resistance: 32.39, 33.64, 34.79
Support: 30.60, 29.21, 27.83