Published On: Tue, Feb 21st, 2017

Daily Market Review

InstaForex

Today, the US dollar strengthened against most competitors, the reason for that was the speech of Philadelphia Fed’s Patrick Harker. He has long been famous for its “hawkish” stance in matters of monetary policy tightening, so this time also Harker said he did not rule out a rate hike at the March meeting. This statement gave the US currency a strong growth momentum: US currency increased against euro by 0.81% (to the level of 1.0530), against British pound by 0.53% (to the level of 1.2400), against Japanese yen by 0.53% (to the level of 113.70), against Australian dollar by 0.54% (to the level of 0.7650). Today, investors are also waiting for comments of the Head of the Federal Reserve Bank of Minneapolis Neel Kashkari, which can also adversely affect the market movements.

Worth noting that today positive statistics for the dollar competitors were released. Thus, the February index of business activity in the industrial sector of Japan rose from 52.7 to 53.5 points, the same indicator for the Eurozone increased from 55.2 to 55.5 points. In the UK, due to the significant tax revenues a reduction in public debt were recorded, which amounted to 49.3 billion pounds – the best figure since 2008. However, all these positive data could not prevent the strengthening of the US currency.

Metals also reacted to the speech of Harker decreasing in price: gold lost 0.79% (quotes reached the level of 1227.90), silver lost 1.17% (quotes reached the level of 17.80). However, oil prices are rising today: Brent hit the level of 57.20 and WTI went up to the level of 54.70. Although it is still a question whether Brent would be able to reach the level of $ 60 per barrel. Meanwhile the implementation of the agreement of OPEC + provides positive backdrop for investors. On the other hand, the intentions of the US shale companies to increase production and to gain greater market share may also adversely affect the oil prices.

European indices CAC40 and DAX gained 0.38% and 0.90%, respectively, but the FTSE100 today is an outsider – after a morning of growth, it lost 0.29% on the news of the HSBC bank, reporting a 62% drop in profits. US indexes DOW and S&P500 renewed attempts to growth, but have not yet reached yesterday’s highs. They are currently trading near 20670.0 and 2353.0.

Аналитика Форекс

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