Daily Market Review — 24/02/2016
Yesterday, the euro continued its decline against the US dollar, aided by negative statistics for the Euroarea economy. Thus, according to data released yesterday, Germany’s GDP in the final estimate for the fourth quarter 2015 matched with the average forecast of experts. However, data from the German institute IFO disappointed market participants. So, the expectations index and business climate declined in February, which pointed out some concern among investors in the world’s financial problems. The current dynamics of the pair will completely subordinate to US statistics. Thus, in the 14:45 (GMT) will be published U.S. services PMI by Markit, and 15:00 (GMT) index of new home sales will be presented. However, market participants will pay attention to the situation on the commodity markets. Let us remind that in recent times, investors often use the euro as a funding currency and as safe assets in case of financial instability.
Resistance: 1.1052, 1.1086, 1.1125
Support: 1.0989, 1.0947, 1.0897
The Japanese currency strengthened against the US dollar again. This was due to the flight of investors from the risks against the backdrop of a renewed decline in oil prices. Meanwhile, almost every day there are statements of Japan’s high-ranking officials, who express concern about the high rate of national currency. Some support to the yen yesterday provided US statistics, according to which the indicator of consumer confidence this month fell more than expected, most of the experts. However, today final data on Japan leading index were presented, and index was slightly below the average forecast of analysts. Further dynamics of pair will depend on the willingness of investors to take risks. Also, U.S. services PMI by Markit, which will be published at 14:45 (GMT), may influence the market.
Resistance: 112.74, 113.54, 114.41
Support: 111.62, 110.98, 110.12
Yesterday’s trading day the major US stock indices closed in the red, as the commodity market assets, including oil, once again demonstrated negative dynamics. Data on US existing home sales, which were better than the average forecast of experts, influenced the market. However, U.S. CB Consumer Confidence fell unexpectedly in February. The current dynamics of stock markets will depend on the general mood of investors who watch over conditions of commodity areas.
Resistance: 1932.13, 1946.26, 1964.02
Support: 1909.38, 1890.21, 1865.01
Light Sweet Crude Oil Futures
Yesterday quotes of “black gold” fell by more than 4% after Iran has called the initiative to freeze the amount of production at the January’s level, simply ridiculous. In addition, OPEC Secretary General said that in case of increase in oil prices there will be observed increase in shale oil production in the United States that completely override the freeze’s effect. Also, American Petroleum Institute said crude oil stocks rose 7.1 million barrels last week, well above the 3.0 million barrel that was forecasted. Today, there will be important report on crude oil stocks from the US Department of Energy, which will be published at 15:30 (GMT).
Resistance: 31.51, 32.40, 33.74
Support: 30.61, 29.75, 28.70