Daily Market Review — 25/02/2016
The British currency remains under pressure due to Brexit. According to experts in the near future investors will not invest money in UK economy, this fact provides a negative impact on the course of the national currency. However, some support for the pair yesterday provided weak data on the US economy. Thus, according to published data, U.S. Services PMI fell in February to the level of 49.8 against the average forecast of experts at the level of 53.5. In addition, new home sales in the US fell sharply in January. Today, the publication of UK GDP at 09:30 (GMT) will provide a significant impact on the dynamics of the pair. Also today will be published data on U.S. Durable Goods Orders at 13:30 (GMT). And at the same time, there will be data on US labor market data.
Resistance: 1.3974, 1.4057, 1.4166
Support: 1.3878, 1.3724, 1.3540
The Japanese currency at yesterday’s session continued its consolidation on a wide range of markets. This trend was due to the use of the yen as a safe asset amid ongoing financial problems caused by the sharp drop in oil prices. However, in the second half of the trading day the pair has recovered somewhat after rising oil prices. This morning, there was Bank of Japan’s representative statement, he said that the medium-term market inflation expectations moved to a negative. This put some pressure on the Japanese currency. Eurozone inflation data which will be presented at 10:00 (GMT), may influence the market. Also, a similar report on the Japanese economy will be published in the 23:30 (GMT).
Resistance: 124.26, 126.01, 127.25
Support: 122.43, 120.84, 119.61
Major stock indexes in Europe in yesterday’s trading copied the dynamics of oil prices. In the morning, they fell significantly, and recovered their positions in the second part of the day. Nevertheless, yesterday’s session was closed in the red zone. The concerns about slowing global growth were above all. Meanwhile, some pressure on stock markets yesterday provided the speech of the Bundesbank, Jens Weidmann, who said he did not see the feasibility of further expanding stimulus by the ECB. Today, investors will pay attention to data on UK GDP, which will be presented at 09:30 (GMT), and the inflation rates of the Eurozone, which will be published at 10:00 (GMT).
Resistance: 9315.00, 9434.59, 9552.99
Support: 9118.97, 9032.67, 8922.88
Precious metal quotes yesterday broke the mark of $1250.00 per ounce, but could not hold its positions. This trend was caused by the flight of investors from the risks against the background of falling stock markets and oil prices. Also, the increase in the price of gold contributed to a depreciation of the US currency. Yesterday data on business activity in the United States were published, and also the new home sales were slightly worse than forecasts of experts. However, in the afternoon there was a drop of gold prices on profit taking after a recovery in oil prices and stock indices. Today, investors will look at data on the US labor market and durable goods orders, which will be presented at 13:30 (GMT).
Resistance: 1252.98, 1262.76, 1273.80
Support: 1220.61, 1200.63, 1185.74