Daily Market Review — 27/01/2016
During yesterday’s trading day the pair showed an upward trend, due to recovery in commodity markets. It is worth mentioning that market participants ignored the Bank of England Governor Mark Carney’s statement. He said that the time to raise the interest rate has not come yet. The British regulator will only raise rates if there will be confidence in the sustainability of economic development of the UK. He also said that the previous US Federal Reserve rate hike has caused volatility in the financial markets, but was widely anticipated. Today, market participants will pay attention to the Fed Interest Rate Decision and FOMC Statement that will be announced at 19:00 (GMT).
Resistance: 1.4363, 1.4477, 1.4601
Support: 1.4243, 1.4082, 1.3955
The New Zealand dollar rose somewhat against US currency, due to general optimism in commodity markets. The rising of prices for oil and other commodities helped restore risk appetite among investors. Despite the positive statistics on the US economy, New Zealand currency continued its upward trend. Today dynamics of the pair will see huge impact from the Fed Interest Rate Decision and FOMC Statement to be announced at 19:00 (GMT). The market is not expecting the US to change the current settings of monetary policy. Also today there will be a Reserve Bank of New Zealand Rate Statement at 20:00 (GMT), and there is a high probability of a rate cut.
Resistance: 0.6517, 0.6557, 0.6588
Support: 0.6423, 0.6380, 0.6346
US stock markets showed strong growth amid rising oil prices and strong quarterly company reports. The Apple report, which has surpassed expectations of experts, is the focus of market participants. On the other hand, the positive dynamics of oil prices added some optimism to the stock markets. Meanwhile, investors today will pay attention to the Fed Interest Rate Decision and FOMC Statement that will be announced at 19:00 (GMT). In the statements, market participants will try to find clues on the pace and terms of further tightening of monetary policy by the US regulator.
Resistance: 4215.03, 4279.24, 4362.64
Support: 4131.77, 4076.00, 3986.02
Light Sweet Crude Oil Futures
Quotes of “black gold” rose significantly during yesterday’s session, breaking the level of $31 per barrel. Such dynamics, according to the Iraqi Oil Minister’s statement, were caused by the expectation that oil-producing countries will be able to agree a decline in production in order to stabilize oil prices. Also, he noted that Saudi Arabia and Russia demonstrated substantial progress on this issue. However, the optimism in the market quickly passed after the publication of data on stocks of crude oil from the US Institute of Petroleum. The oil reserves last week increased by 11.4 million barrels, while experts had expected to see their growth by only 3.5 million. The current dynamics of oil will depend on a similar report from the US Department of Energy, which will be published at 15:30 (GMT).
Resistance: 31.30, 33.34, 35.56
Support: 29.54, 27.53, 27.00