Daily Market Review — 09/03/2016
The British currency resumed its decline against the US dollar at yesterday’s session. This was facilitated by the Bank of England head Mark Carney’s statement about the future prospects of the British economy in the case of Brexit. At the moment it looks like UK will stay EU member. However, some support provided statement of BOE’s Martin Weale, he said that regulator is likely to increase rates. Today, the dynamics of the trade will significantly depend on data on industrial production in the UK, which will be presented at 09:30 (GMT).
Resistance: 1.4251, 1.4360, 1.4463
Support: 1.4107, 1.4030, 1.3914
The pair showed a downward trend yesterday. This was due to increased demand for the Japanese currency as a safe asset after the publication of negative statistics on the Chinese trade balance. The second reason for the negative dynamics of the pair was renewed oil prices’ drop, which is heavily dependent on exchange rate of the Canadian currency. The current dynamics of the pair will be depend on the Bank of Canada’s decision on interest rates, which will be announced at 15:00 (GMT). At the same time, it will be published Canadian regulator’s statement.
Resistance: 84.22, 84.94, 85.73
Support: 83.52, 82.83, 82.28
Major US stocks fell yesterday, which was due to weak statistics on China’s trade surplus and oil prices’ fall. Statistics on the Chinese economy, which was published yesterday, did not meet the expectations of experts, and registering a strong drop in both exports and imports. This situation points to the continuing problems in the world’s second largest economy. Meanwhile, investors’ attention is on tomorrow’s ECB meeting. The market expects the adoption of additional measures to support the economies.
Resistance: 1991.60, 2006.10, 2016.44
Support: 1975.54, 1966.18, 1955.70
Light Sweet Crude Oil Futures
Yesterday the quotations of “black gold” were under pressure once again dropping below the level of $37 per barrel. Such dynamics was caused by Kuwait’s reports, it was said that the country is ready to freeze oil production at previous levels only if other oil-producing countries will do the same. Significant pressure provided inventory data from the US Institute of Petroleum, according to which stocks have grown by 4.4 million barrels compared to the average forecast of experts on their growth by 3 million. Today, investors will pay attention to similar report from the US Department of Energy, which will be published at 15:30 (GMT).
Resistance: 37.29, 38.21, 39.00
Support: 36.17, 35.29, 34.59