Published On: Wed, Feb 22nd, 2017

Midday Market Review


The market is still under the influence of expectations of interest rate hike in the United States. Today the US currency strengthened against its major rivals prior to the publication of the Fed’s meeting minutes. Investors expect confirmation of “hawkish” attitude and hints on the timing of rate hikes.

During the day, the US dollar strengthened against the euro by 0.40% (to the level of 1.0490). The market price is incorporating the political risks of a possible victory of Marine Le Pen in French presidential election.

Against British pound US dollar rose by 0.41% (to the level of 1.2423). The decrease in the GBP/USD pair could not be prevented by a strong preliminary GDP data in the UK: the growth rate was 0.7% in the IV quarter.

Against Japanese yen the dollar has lost 0.68%. The pair USD/JPY hit 113.00 and is likely to decline to the support level of 113.00.

Gold continued to rise today, and hit the level of 1240.00. Silver was testing the resistance level of 18.00, but couldn’t overcome it. It should be noted that the publication of FRS “minutes” could put a significant pressure on the metal quotes.

Oil prices after the Asian trading session lost positive momentum and are now declining. Brent fell by 0.85% (to 56.15), WTI – by 0.70% (to 53.80), influenced by the statements of Iranian Oil Minister Zanganeh that the price above $ 60 per barrel could seriously damage OPEC It would stimulate the exporters who do not participate in OPEC’s agreement to increase production. The decrease could be prebvented by a weekly report from the American Petroleum Institute.

European indices CAC40, DAX and FTSE100 traded in different directions. At the beginning of the session there was an increase, but later, after the publication of data on consumer price inflation in the Eurozone, we witnessed a dramatic decline. CAC40 was an outsider, which lost 0.30%.

US indexes DOW and S&P500 updated yearly highs on Tuesday in the areas of ​​20750.0 and 2365.0, but now they are being corrected. To date, they have lost 0.21% and 0.22% respectively.

Аналитика Форекс

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