Daily Market Review — 23/02/2016
During yesterday’s trading day the pair showed mixed trends, due to publication of economic statistics. In the first half of the trading day the British currency became cheaper on a wide range of market because of concerns about Brexit. In addition, Mayor of London, Boris Johnson, is calling for the UK citizens to vote for the country’s exit from EU. In such case, the UK economy may suffer from the capital outflow from the country. Nevertheless, some pressure on the pair yesterday put weak data on business activity in the Eurozone. Today, the dynamics of the pair will depend on the investors’ mood in a question of Brexit. Also, some influence may provide data on German GDP and data on the IFO Institute, to be held at 07:00 (GMT) and 09:00 (GMT), respectively.
Resistance: 0.7843, 0.7896, 0.7959
Support: 0.7777, 0.7732, 0.7663
The Canadian currency strengthens yesterday against the backdrop of the recovery of oil prices. Quotes of oil recovered in the background of the International Energy Agency report that predicts a reduction in US oil production in March this year. In addition, according to Baker Hughes’ data the number of rig in the US last week fell by 26 units. Also, some pressure on the US dollar yesterday put data on business activity in the US manufacturing sector, which fell more than it was forecasted. Today, the dynamics of pair will depend on the situation on the oil market, on the publication of U.S. Richmond manufacturing index, and on the U.S. CB Consumer Confidence at 15:00 (GMT).
Resistance: 1.3784, 1.3845, 1.3911
Support: 1.3669, 1.3621, 1.3521
Major stock indexes in Europe yesterday showed strong growth, rising with up to three-week highs. This trend was due to the growth of the shares of commodity producers and recovery of oil prices. Also investors paid attention to UK’s membership in the EU. Data on Eurozone manufacturing PMI also influenced the market. Today’s dynamics will depend on the publication of Germany’s GDP in the revised estimate in 07:00 (GMT). Also, 09:00 (GMT) will feature data from the German institute IFO. In addition, today will be BOE’s Governor Mark Carney statement, which is scheduled for 10:00 (GMT).
Resistance: 9552.99, 9658.57, 9787.60
Support: 9341.85, 9259.73, 9118.97
Quotes of the precious metal showed moderate decline yesterday due to strengthening of US dollar. Also, recovery of stock markets and oil prices put some pressure on gold. Some influence on the dynamics of trade has data on the US manufacturing PMI, which was slightly below the average forecast of experts. Investors will closely monitor incoming US data to assess how strong the US economy to cope with another rise in interest rates. Today, the dynamics of trade can be affected by the publication of U.S. CB consumer confidence at 15:00 (GMT).
Resistance: 1231.81, 1246.47, 1262.76
Support: 1200.63, 1185.74, 1172.24