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Daily market review

Daily Market Review – 22/06/2017

Low bidding activity due to the deficiency of relevant economic statistics

 

Forex

Retail sales in Canada may affect the dynamics of the USD/CAD pair trading

USD/CAD

USDCAD

The American currency strengthened slightly during yesterday’s trading against its Canadian counterpart. Such dynamics mainly reflect a drop in oil quotes. Remember, the Canadian dollar rate directly depends on the cost of oil, because “black gold” is one of the principal exports of Canada. Meanwhile, the ambiguous comments of US Federal Reserve officials put an additional restraint on the American dollar growth. Consequently, as a result of these announcements, traders began to postpone the next rate increase. The trading dynamics may be affected today by the publication of Canada retail sales data, which should be presented at 12:30 (GMT).

Resistance levels: 1,33534, 1,33852, 1,34243
Support levels: 1,32855, 1,32490, 1,32115

Statement by the British central bank official provided support for pound

GBP/USD

GBPUSD

Yesterday, the British currency strengthened significantly. The reason for this dynamic was the speech of the Bank of England chief economist Andy Haldane in favor of rates increase. We should recall that the day before, the Governor of Bank of England, Mark Carney expressed the opposite point of view. In addition, yesterday’s speech by the Queen of Great Britain marked the beginning of the work of the new Parliament of the country. In her speech, the monarch expressed her desire for constructive work of the legislative body, which together with the government could develop a favorable position on the issue of Brexit.

Today, the Confederation of British Industry publication of industrial orders balance data at 10:00 (GMT) may further impact the GBP/USD pair dynamics. Also, the current US labor market report will be presented today at 12:30 (GMT).

Resistance levels: 1,27093, 1,27575, 1,28185
Support levels: 1,26383, 1,25935, 1,25400

 

Stock market

The fall of the financial sector put pressure on European stock exchanges

FTSE Futures

FTSE

The main Europe stock indexes closed yesterday’s trading in the red zone. Such dynamics was caused by the shares’ fall of the financial companies. In addition, oil prices drop connected to the global market concerns over world excessive oil supply put the pressure on the stock market.

Meanwhile, the statement by an official of the Bank of England who noted the possibility of tightening credit conditions had some effect, as this would be an unprofitable factor for stock exchanges. Today, reports by representatives of the US Federal Reserve which will take place in the afternoon may have additional influence on the markets.

Resistance levels: 7404,45, 7424,55, 7446,90
Support levels: 7369,80, 7351,80, 7335,35

 

Commodity market

The precious metal has retreated from the minimum values

GOLD

Gold

The prices for black gold withdrew from lowest prices of the past many weeks in response to the weakening of the US currency. Also, investors prefer gold as a protective asset in the light of a general fall of stock exchanges.

Meanwhile, the decrease in the probability of the next rate increase by the US Federal Reserve also supports gold. Recall that during the growth of rates the US dollar becomes more expensive, and this causes a drop in the cost of gold. Besides, gold can not compete with other assets that generate interest income. Nevertheless, according to most analysts, gold will be supported by political uncertainty in the US and Europe, at least on the short and medium terms.

Resistance levels: 1254,87, 1257,15, 1259,36
Support levels: 1249,20, 1246,39, 1242,79

Daily Market Review – 21/06/2017

Traders adjust their positions in the USD’s favour

 

Forex

New Zealand’s Central Bank Meeting will be in the centre of attention

NZD/USD

NZDUSD

Yesterday, the US currency continued its strengthening, started the day before. Nevertheless, the American has somewhat surrendered its positions in the morning, reflecting on the speech of US Federal Reserve Banker Charles Evans. During his speech, Evans noted that the US central bank should wait with their next rates’ increase until December. Meanwhile, after Rosengren’s talk, the US dollar got another boost. The official said that low interest rates could become a problem for the American economy. Thus, the number of supporters of tight monetary policy is rising every day.

Also, some pressure came from the released results of dairy auction which is held twice a month. During yesterday’s trading, prices for dairy products decreased by 0.8%. Let’s remind that milk powder is one of the main export products of New Zealand. Today, traders will be cautious about the pair, as the Reserve Bank of New Zealand will announce their decision on interest at 9:00 pm (GMT). Market participants can expect an accompanying statement at the same time.

Resistance levels: 0,72473, 0,72673, 0,72928
Support levels: 0,72085, 0,71895, 0,71731

Mark Carney’s speech put pressure on the British currency

GBP/JPY

GBPJPY

Yesterday, the pair demonstrated a significant drop against the background of the general decline of the British currency. The GBP has fallen in price across a wide spectrum of the market after the Bank of England’s head Mark Carney’s remark. During his speech, the head has noted, that time of the rates’ increase has yet to come. In addition, Christine Forbes, who voted in favour of rates’ increase at the last meeting of the central bank, will leave her position this month. The dynamics of the pair seems logical in these circumstances, since the Japanese yen often acts as a protective asset during economic and political crises. So, yesterday there was a sell-off in the stock market and the oil market, which made investors retreat to safe assets. This put additional pressure on the pair. Today, the pair’s dynamics may be affected by the speech of the Bank of England Monetary Policy Committee’s member, Andy Haldane, scheduled for at 11:00 (GMT).

Resistance levels: 140,896, 141,417, 142,167
Support levels: 139,899, 139,391, 135,759

Stock market

The high probability of another rates’ increase in the US puts pressure on stock markets

S&P500 Futures

SP500

Yesterday, the major US stock indexes mostly declined. This dynamic was due to a high probability of tightening credit conditions on the part of the US Federal Reserve. In addition, the European Central Bank, most likely, will also begin to reduce the incentive program. This will put pressure on the global stock markets, as loan servicing will be more expensive for investors. In addition, falling oil prices produced additional pressure on the stock exchanges. Today, investors will be influenced by political news.

Resistance levels: 2441,20, 2446,20, 2450,54
Support levels: 2428,17, 2424,21, 2420,32

 

Commodity markets

“Black gold’s” quotes reached a seven-month low

Brent Oil Futures

BrentOil

Oil’s quotes fell yesterday, updating the seven-month low at $ 45.44 per barrel. Such dynamics was caused by concerns over the oversupply on the world oil market. According to investors, the increase in production in Libya, Nigeria and the US can offset the efforts of OPEC + countries to reduce production. Today, trade’s dynamics can be affected by report on oil reserves from the US Department of Energy at 14:30 (GMT).

Resistance levels: 46,70, 47,50, 48,17
Support levels: 45,40, 45,00, 44,50

Daily Market Review – 20/06/2017

Comments from the FRS’ officials provide support for the American currency

 

Forex

Yesterday, the GBP lost ground to its U.S counterpart

GBP/USD

GBPUSD

During yesterday’s morning trading session, the pair grew moderately. This dynamic was due to the positive start of negotiations between the UK and the EU on Brexit. However, later in the day, the dynamics changed dramatically after the speech of the Federal Reserve Bank of New York’s President, William Dudley. During the speech he stressed the need for further rates’ increase. In addition, he expressed optimism about the US economic development and the achievement of the target level of inflation. Along with this, information came yesterday that Silvana Tenreyro will be appointed instead of Kristin Forbes, who will leave her position at the Bank of England’s Monetary Policy Committee in June. The former has established herself as a supporter of soft monetary policy. That is why investors expect that at the Bank of England’s meeting in August, only two members will vote for rates’ increase, instead of three voting for it in June.

Today, the focus of attention will be on the speeches of representatives of central banks. Thus, the head of the Bank of England, Mark Carney, will speak at 07:30 (GMT), and the officials of the US Federal Reserve Bank, Rosengren, Fischer and Kaplan give their speeches in the afternoon.

Resistance levels: 1,28175, 1,28705, 1,29291
Support levels: 1,27043, 1,26383, 1,25935

The Russian rouble came under pressure

USD/RUB

USDRUB

The Russian currency has been under pressure against the US dollar for the second consecutive week. There are several reasons for this. First of all, there is a decrease in the attractiveness of the rouble for foreign investors, as a result of interest rate’s decrease announced by the Bank of Russia last Friday. On the other hand, the US Federal Reserve raises interest on loans, thereby provoking a flow of capital from Russian assets to US assets. Also, the falling oil prices cannot provide support to the rouble. And, finally, new US sanctions against Russia can force investors to leave the Russian market. In this situation, the pair may well reach levels of 60.00-62.50 roubles per unit of US currency in the medium term. This in turn will increase the exchange rate of the cash dollar by at least two or three roubles in comparison with the interbank rate.

Resistance levels: 58,45753, 58,82059, 59,13358
Support levels: 57,95677, 57,67341, 57,35015

 

Stock market

Political events provided support to European stock exchanges

IBEX Futures

IBEX

The main European stock indexes completed yesterday’s trading mostly in the green zone. This was due to political developments in the region. On Sunday, the second round of parliamentary elections was held in France. According to the results, the party of newly elected President Emmanuel Macron has gained an absolute majority in the legislative body of the country. This supported the stock market, as this political force stands for United Europe. In addition, the negotiations on Brexit launched yesterday, marked the beginning of a constructive dialogue between the parties. Today, investors can be influenced by statements by central banks’ officials.

Resistance levels: 10861,00, 10890,00, 10925,00
Support levels: 10778,00, 10746,00, 10716,00

 

Commodity markets

Gold is struggling amid the USD’s strengthening

GOLD

Gold

The precious metal’s quotes fell sharply yesterday, reaching a new monthly low. Such dynamics was caused by a significant strengthening of the US currency, in which the value of gold is expressed. The US dollar has risen in price in response to the speeches of the US Federal Reserve’s representatives.

Today, investors will also be focused on the speeches of the Fed’s officials. In particular, special attention will be paid to the speech by Stanley Fischer, who is the vice chair of the US Federal Reserve. His speech will be held at 12:00 (GMT).

Resistance levels: 1250,00, 1254,80, 1260,10
Support levels: 1242,80, 1239,30, 1235,40

Daily Market Review – 19/06/2017

Today’s main event: the Brexit negotiations between EU and Great Britain begin in Brussels

 

Forex

Political news will be the main driver for the pair

EUR/GBP

EURGBP

During Friday’s evening session the pair recovered some of the losses incurred the day before. It is worth reminding that last Thursday, at the Bank of England’s meeting, three members voted to increase rates. Also, the regulator’s statement was more stringent than investors expected.

Nevertheless, on Friday the pair was supported by the data on the euro area inflation in the final assessment. Today the pair may react on the release of the monthly report of the Bundesbank at 10:00 (GMT).

In addition, market participants will be looking at the results of the parliamentary elections in France. However, the main attention of traders will be focussed on official Brexit talks. The negotiations on the problems associated with the UK’s withdrawal from the European Union will start today in Brussel.

Resistance levels: 0,87800, 0,88069, 0,88353
Support levels: 0,87262, 0,86870, 0,86539

Fed officials’ speeches may have an impact on the currency pair

USD/JPY

USDJPY

After significant growth against the background of the Fed meeting’s decisions, the pair fell slightly on Friday. Pressure on the USD came as a result of weak statistics on new housing and building permits. According to the data presented, the figures for May did not reach the analysts’ forecasts, having demonstrated a third monthly decline in a row instead. In addition, the consumer confidence index from Reuters / Michigan also dropped this month. This reflects on somewhat reduced confidence of consumers. Meanwhile, today the dynamics of trading may be influenced by the speeches of officials of the US Federal Reserve, which will be presented at today’s evening session.

Resistance levels: 111,390, 111,697, 112,036
Support levels: 110,474, 110,117, 109,631

 

Stock market

Weak economic statistics put pressure on US stock markets

S&P500 Futures

SP500

Major US stock indexes dropped sharply on Friday, reflecting on weak statistics on the US real estate market. In addition, investors were cautious after the US Federal Reserve’s decision to increase rates. Higher rates lead to higher costs of servicing borrowed funds, which is a negative for stock market.

Nevertheless, the stock exchanges claimed back almost all of their losses by the end of Friday’s trading. Today, the focus of investors’ attention will be on the speeches of the US Federal Reserve’s officials.

Resistance levels: 2439,03, 2441,21, 2443,44
Support levels: 2433,01, 2430,47, 2428,24

 

Commodity markets

Oil prices stabilized

Brent Oil Futures

BrentOil

During Friday’s morning session the “black gold” quotes demonstrated moderate growth. This dynamic was caused by a partial fixation of profits after a significant fall. Meanwhile, the downward trend resumed after the publication of the Baker Hughes’s report. According to the data presented in the report, the number of operating drilling rigs in the US increased by 6 units last week. This tendency has been observed for twenty-two weeks in a row. In addition, a strong US dollar puts additional pressure on oil.

Today, trade’s dynamics will be affected by the mood of investors and the balance of supply and demand in the world market.

Resistance levels: 47,60, 48,10, 48,80
Support levels: 46,70, 46,20, 45,75

Daily Market Review – 15/06/2017

Yesterday, the US Federal Reserve justified the market expectations

All eyes are now on the Banks of England and Switzerland

 

Forex

The British regulator can provide support for the GBP

GBP/USD

GBPUSD

During yesterday’s trading, the pair demonstrated mixed dynamics, although the pound closed higher. The pair was influenced by the disappointing data on inflation and retail sales in the US for May. According to the data presented, the actual values for May did not reach the expected levels.

Meanwhile, the results of the two-day meeting of the US Federal Reserve were announced yesterday. The American regulator raised rates by 0.25%, which fully coincided with market expectations. In addition, the head of the regulator said that their plans are to raise rates again this year. During the press conference, she stressed that the Central bank’s balance will be cut soon, which will support the US currency.

Along with this, the decision on interest rates and the program for the purchase of assets of the Bank of England will be announced today at 11:00 (GMT). It is worth noting, that the British regulator is not expected to change the parameters of monetary policy.

Resistance levels: 1,28175, 1,28705, 1,29291
Support levels: 1,27043, 1,26383, 1,25935

The focus is on the Central Bank of Switzerland decisions

USD/CHF

USDCHF

Over the past few days, the pair stayed in an upward trend, which was due to the gradual strengthening of the US currency. Meanwhile, according to the data presented yesterday, inflation in May in the US slowed, which can stop the US Federal Reserve on their path of tightening monetary policy.

Nevertheless, according to the results of yesterday’s press conference given by the Fed’s head Janet Yellen, any doubts about the intentions of the American regulator have disappeared. According to her, at least one more rate increase should be expected this year. Meanwhile, today’s Swiss National Bank’s decision on interest rates is likely to not support the franc. The Swiss regulator most probably will not change the parameters of its policy. At the same time, the publication of American statistics in the afternoon may have a certain effect on the dynamics of the pair.

Resistance levels: 0,97971, 0,97402, 0,97812
Support levels: 0,96783, 0,96622, 0,96400

 

Stock market

The European securities market declines

IBEX Futures

IBEX

Weak economic statistics and the expectation of tightening monetary policy on the part of the Fed put pressure on European stock indexes. It is worth noting, that the US and Europe are strategic trading partners. Meanwhile, data on industrial production in the Eurozone, published yesterday, disappointed investors. Today, the focus of attention will be on the meeting of the Banks of England and Switzerland. These regulators are not expected to change the monetary policy, so the interest will mainly be attracted to accompanying statements.

Resistance levels: 10784,50, 10804,70, 10827,80
Support levels: 10742,10, 10722,40, 10702,90

 

Commodity markets

Gold price crashed amid the decision of the US Federal Reserve

GOLD

Gold

Yesterday, quotes were subject to the movements of the US currency, which they have an inverse relationship with. So, after disappointing data on US inflation, gold rose in price. Nevertheless, after the results of the Fed meeting were announced, quotes of precious metal significantly decreased. It is worth reminding that when rates increase, the US currency rises in price, which in turn leads to a drop in the value of gold. Today, investors will be focused on the US statistics, which will be released in the afternoon.

Resistance levels: 1266,70, 1272,40, 1278,60
Support levels: 1259,00, 1255,00, 1250,00

Daily Market Review – 14/06/2017

The USD’s future dynamics depends on the Fed

 

Forex

The focus is on the economic statistics and on the US central bank’s decision

EUR/USD

EURUSD

During yesterday’s morning session the pair grew slightly, which reflected on mixed statistics on the business environment released by the German Institute ZEW. However, in the second half of the day, the dynamics changed dramatically.

Yesterday, the Bureau of Labor Statistics released the data on the change in the US producer prices for May, which exceeded the experts’ forecasts. Nevertheless, today is a particularly important day for the US currency. The US Federal Reserve is preparing to announce their decision on interest rates at 18:00 (GMT). Also, Ms. Janet Yellen, the head of the regulator, will give a press conference today at 18:30 (GMT). Most experts are almost certain that the central bank will increase rates by 25 basis points. Therefore, investors will be interested not in the fact of the increase as such, but in the further plans of the regulator.

Along with this, a huge block of US statistics will be published before the announcement of the decision at 12:30 (GMT), which can also have some impact on the pair.

Resistance levels: 1,12315, 1,12487, 1,12688
Support levels: 1,11944, 1,11789, 1,11662

The Australian currency strengthened on positive data

AUD/USD

AUDUSD

Yesterday, the pair traded mostly downward. Pressure on the Australian currency came from negative data on the business environment in Australia. In addition, the negative dynamics of the commodity markets produced additional pressure on the pair. Meanwhile, this morning saw the release of China’s industrial production and retail sales data. It is worth noting, that China is a strategic partner of Australia. According to the data presented, growth in industrial production and retail sales in May exceeded analysts’ expectations. This provided moderate support to the pair. Along with this, today’s attention will be focused on the US Federal Reserve’s decision on interest rates. Nevertheless, the market participants will be getting ready for tomorrow’s Australian labour market’s data release.

Resistance levels: 0,75642, 0,75829, 0,76086
Support levels: 0,75260, 0,74992, 0,74655

 

Stock market

The US stock indexes recovered some of the lost positions

Dow Futures

Dow

The main US stock indexes grew during yesterday’s auction, thanks to the observed technology sector’s recovery and the rise of bank stocks. Also, support to the securities market was provided by positive statistics on the US economy. In addition, the rising oil prices supported the shares of energy companies. Meanwhile, investors are cautious while expecting the announcement of the results of the two-day Fed’s meeting. Investors will be interested in the Federal Reserve’s plans on interest rates for this year, and the bank balance’s reduction.

Resistance levels: 21331,00, 21340,20, 21351,00
Support levels: 21300,60, 21280,00, 21264,20

 

Commodity markets

The “Black Gold” is flat amid negative data

Brent Oil Futures

BrentOil

Oil prices dropped yesterday after OPEC noted in its monthly report, that in May, there was an increase in oil production. In addition, according to the calculations of the OPEC’s economists, the balancing on the world oil market is happening at a slower pace than was previously expected. Also, the US Petroleum Institute reported an oil reserves’ increase of 2.75 million barrels against the forecast for their reduction by a similar amount. Today, the focus will be on the US Department of Energy’s report, which will be presented at 14:30 (GMT).

Resistance levels: 48,80, 49,50, 50,20
Support levels: 48,00, 47,50, 47,00

Daily Market Review – 13/06/2017

The US Federal Reserve starts its two-day meeting today

 

Forex

The falling GBP will drive the acceleration of inflation

GBP/USD

GBPUSD

Yesterday, the pair continued its decline amid political uncertainty in the UK. Meanwhile, during the weekend, Theresa May was re-elected as a Prime Minister. Most former ministers also retained previous portfolios. It is worth noting that the Brexit negotiations will start on June 19. That is why the UK government needs to produce a unified position.

Meanwhile, the pressure on the pair came as a result of general strengthening of the US dollar. At the same time, investors are cautious in the light of the US Federal Reserve’s meeting. The market will be able to learn its results tomorrow. Nevertheless, today the trading dynamics can be significantly affected by the publication of data on British inflation at 08:30 (GMT). Analysts assume that consumer prices jumped up in May due to the fall of the pound. In future, this may force the Bank of England to increase rates.

Resistance levels: 1,27086, 1,27700, 1,28448
Support levels: 1,26383, 1,25935, 1,25538

The securities market crush caused the Japanese yen to strengthen

USD/JPY

USDJPY

The Japanese currency was in high demand yesterday, despite the USD’s recovery. Such dynamics were caused by the fall of world stock markets. That is why investors preferred to buy the Japanese as a protective asset. This week will see not only the Fed’s, but also the Bank of Japan’s meeting. Meanwhile, analysts expect that rate increase will be announced exclusively by the American regulator. Therefore, yesterday’s decline, was most likely a short-term phenomenon and in the future the pair will grow. At the same time, trade’s dynamics may be affected today by the US producer price index data, which will be released at 12:30 (GMT).

Resistance levels: 110,475, 110,816, 111,235
Support levels: 109,631, 109,368, 109,106

 

Stock market

The European stock indexes demonstrate negative dynamics

IBEX Futures

IBEX

During yesterday’s trading session, the main European stock indexes declined. Most investors preferred to be cautious about opening new positions. This strategy was influenced by the upcoming world’s largest central banks’ meetings. In addition, after the governing Conservative Party lost several seats in the recent UK parliamentary elections, most analysts expect that the government will adopt a softer approach to the Brexit negotiations. Today, the dynamics of trading may be affected by the publication of data from the German Institute ZEW. The data will reflect on the atmosphere in the business environment in Germany and the Eurozone as a whole. This report will be presented at 09:00 (GMT).

Resistance levels: 10882,15, 10927,71, 10953,34
Support levels: 10783,43, 10748,31, 10713,19

 

Commodity markets

Gold decreases slightly amid expectations of the Fed meeting’s results

GOLD

Gold

Yesterday gold stabilized at the levels reached earlier. Pressure on precious metal is coming from the USD’s strengthening. On the other hand, the political uncertainty surrounding the British Parliament will support gold in the short term. Meanwhile, investors are cautious prior to the US Federal Reserve meeting, since the Fed is widely expected to increase rates. It is worth reminding, that when rates increase, gold loses in price, as it becomes less attractive for investors. Today, trade’s dynamics will be somewhat affected by the publication of US statistics.

Resistance levels: 1269,00, 1275,00, 1278,60
Support levels: 1260,00, 1255,00, 1250,00

Daily Market Review – 12/06/2017

The beginning of the week promises to be calm

Forex

The Parliamentary elections will decide the euro’s future

EUR/USD

EURUSD

During Friday’s morning session, the pair collapsed dramatically, reflecting on the results of the UK parliamentary elections. Theresa May’s Conservative Party lost its absolute majority in the parliament, which can make negotiations on Brexit even more difficult.

To make matters even worse, pressure came from negative data on Germany’s trade and payment balance for April, which turned out to be lower than the experts’ expectations. The USD’s recovery across a wide range of markets resulted in additional pressure on the pair.

Along with this, the first round of parliamentary elections was held yesterday in France and was closely followed by investors. Today, the economic calendar is empty, so the currency pair will be guided by technical factors. Nevertheless, the market participants will prepare for tomorrow’s publication of data from the German institute ZEW.

Data on the US’ producer price index will be released tomorrow.

Resistance levels: 1,12344, 1,12487, 1,12688
Support levels: 1,11944, 1,11789, 1,11662

The Canadian labour market grows

USD/CAD

USDCAD

During Friday’s trading sessions, the Canadian dollar strengthened significantly against its American counterpart. This dynamics were caused by Canada’s labour market data, which was released for the past month. According to the data presented, 54500 workplaces were created in May superseding the forecasts at the level of 11000. Meanwhile, the unemployment rate rose slightly to the level of 6.6%, in full agreement with the analysts’ expectations. In addition, some recovery in oil prices, an important driver for the Canadian dollar rate, also put pressure on the pair. Nevertheless, today’s pair dynamics may be affected by the speech of the first deputy director of the Bank of Canada at 17:20 (GMT).

Resistance levels: 1,34709, 1,34863, 1,35053
Support levels: 1,34376, 1,34173, 1,33968

 

Stock market

The US technology sector recorded the worst dynamics

Nasdaq Futures

Nasdaq

On Friday, the major US stock indexes dropped. This was due to the fall of companies’ shares in the technology sector. In addition, investors reacted to the mixed results of the British parliamentary elections. Meanwhile, investors now are turning to the Fed’s meeting, which will start tomorrow. The market will know the results of this meeting on Wednesday. According to the analysts’ expectations, the US regulator will raise rates by 25 basis points. It is worth noting that tightening of credit conditions typically leads to sales on the securities market.

Resistance levels: 5741,00, 5753,87, 5769,65
Support levels: 5691,36, 5677,34, 5660,40

 

Commodity market

The “Black Gold” claimed some of the lost grounds back

Brent Oil Futures

BrentOil

“Black gold’s” quotes recovered slightly on Friday, which was interpreted as profit taking after a significant drop the day before. Still, in the world market, supply exceeds demand, despite efforts by OPEC countries to cut production. In addition, according to the information of the service company Baker Hughes, the number of operating drilling rigs increased by 8 units last week. The increase is recorded for 21 consecutive weeks. Also, a strong US dollar puts pressure on oil, as its value is expressed in US currency. Today, trade’s dynamics will be influenced by political factors.

Resistance levels: 49,00, 49,50, 50,20
Support levels: 48,00, 47,50, 47,00

Daily Market Review – 8/06/2017

UK’s future is being decided today

 

Forex

The results of the parliamentary elections will be the main driver for the GBP until the end of the week

GBP/USD

GBPUSD

Yesterday there was no significant economic statistics released, so the pair reacted to the political news. Today, the United Kingdom parliamentary election takes place. The outcome will determine the fate of the country’s negotiations on Brexit, and as a consequence, the UK’s near future. According to preliminary polls, the party of the current Prime Minister Theresa May does not gain an absolute majority, which will influence the formation of the Parliament. In any case, the election results will have a strong impact on the dynamics of pound sterling. During the day, the pair may be influenced by the publication of the US labour market report at 12:30 (GMT).

Resistance levels: 1,29856, 1,30142, 1,30400
Support levels: 1,29265, 1,28872, 1,28368

ECB’s decision will have a strong impact on the euro

EUR/USD

EURUSD

Yesterday, the pair demonstrated significant fluctuations. The dynamics indicated that investors were alert of the ECB decisions, which will be presented to the market today at 11:45 (GMT). The analysts believe that the rhetoric of the regulator’s head Mario Draghi will be more rigid at this press conference. In addition, investors expect announcement on the curtailment of the quantitative easing program. This may lead to the euro’s strengthening. The intrigue will persist until 12:30 (GMT), when Mario Draghi’s press conference will take place.

Resistance levels: 1,12848, 1,13221, 1,13528
Support levels: 1,12468, 1,12057, 1,11679

 

Stock market

Today’s events in Europe will put pressure on European stock markets

FTSE Futures

FTSE

Yesterday, the main European stock markets closed in negative territory. This dynamics reflected on investors’ cautiousness on the eve of the most important events of this week. The ECB meeting will take place today and parliamentary elections will be held in the UK. To make the atmosphere even more charged, yesterday oil fell in price by 4%, which put additional pressure on the European securities market. This primarily affected the quotes of raw commodity and energy companies. Today, the trading volume will be low until the announcement of the ECB decision and the UK elections results.

Resistance levels: 7491,15, 7500,60, 7518,00
Support levels: 7461,00, 7452,50, 7443,30

 

Commodity market

Gold is at a year-high

GOLD

Gold

Yesterday’s gold downwards dynamics was due to profit-taking after significant growth. Nevertheless, gold is supported by the political uncertainty around Trump, as well as the uncertainly of outcome of the UK parliamentary elections. Meanwhile, the reaction to these events can only begin tomorrow. Today, investors will be focused on the speech of the FBI former director, James Comey, about possible Russian ties of Trump’s election committee. Comey will deliver his speech to the special committee of the US Senate. In this case, investors will traditionally turn to gold as a protective asset.

Resistance levels: 1291,40, 1295,00, 1298,00
Support levels: 1283,00, 1278,60, 1274,20

Daily Market Review – 7/06/2017

Investors taking a “wait and see” approach

 

Forex

EUR/GBP

Yesterday, the pair showed growth. It is worth noting that recently the euro was rising across a wide area of the market. This reflects on expectations that the ECB will announce the reduction of the quantitative easing program at their next meeting. The meeting of the central bank will take place tomorrow. Incidentally, the parliamentary elections in the UK will also be held tomorrow.  Data on the ratings of UK political parties prior to the elections gave a boost for the pair yesterday. Thus, Prime Minister Theresa May’s party has the narrowest lead over its main rival since the beginning of election campaign. This situation could put pressure on pound sterling. At the same time, today’s trading dynamics may be affected by the publication of the final assessment of the euro area’s GDP for the first quarter of this year. The release is scheduled for 09:00 (GMT). Nevertheless, investors will be cautious on the eve of tomorrow’s important events.

Resistance levels: 0,87450, 0,87641, 0,87800
Support levels: 0,87110, 0,86920, 0,86740

USD/RUB

The pair has been trading in the sideways range for the past two weeks. Meanwhile, the Russian currency shows enviable stability. This is caused by the use of the Rouble by speculators gaining on the difference in interest rates of central banks. It is worth noting that at the moment the rate of the central bank of Russia is fixed at 9.25%, which is twice the level of inflation, allowing extraction of additional profits. Also, in the recent years, the dependence of the Rouble on the oil prices has practically disappeared. This effect came as a result of the central bank of Russia’s operations with foreign currency in the domestic market. Nevertheless, the Russian currency is potentially unstable in the medium term since the Russian regulator intends to gradually reduce rates. This will neutralize the attractiveness of Russian assets.

Resistance levels: 56,55000, 56,70000, 56,80000
Support levels: 56,12000, 55,95000, 55,80000

 

Stock Market

Apple (AAPL)

This time Apple has come up with another novelty. It is a voice- controlled smart HomePod speaker. The device allows you listen to music, send messages, and even adjust room temperature. According to the company’s top management, with the help of this and other devices, the losses incurred due to the weak sales of the IPhone will be compensated. The company is planning to produce this gadget in two colours. The first batch of products will hit the US, UK and Australian markets in December.

Resistance levels: 155,70, 157,00, 158,20
Support levels: 152,70, 151,25, 150,00

 

Commodity Market

Brent Oil Futures

“Black gold” quotes continue to trade low, reacting on the US increase of production. Also, according to analysts, cessation of diplomatic relationships of several Arab countries with Qatar could undermine OPEC and efforts to cut production and avoid surplus in the world market. At the same time, yesterday oil quotes were backed by data from the US Institute of Oil. According to the data, world oil reserves decreased by 4.62 million barrels, against expectations for their reduction by 3.5 million barrels. Meanwhile, today, investors will be focused on the official report on reserves from the US Department of Energy, which will be presented at 14:30 (GMT).

Resistance levels: 50,55, 51,30, 51,90
Support levels: 49,20, 48,60, 48,00