Published On: Mon, Feb 27th, 2017

Midday Market Review

InstaForex

Today the US Dollar shows mixed dynamics in pairs with its main competitors. The currency slightly weakened against the Euro – by 0.30% (the pair grew to 1.0590), after some fall during the Asian session, strengthened against the Yen by 0.16% while against the Pound it is currently trading in the region of the opening levels, near 1.2400. Generally, volatility on the market remains low that could be explained by two factors – expectations of tomorrow’s Donald Trump speech in Congress in which he could disclose details of the promised fiscal reform, and the approaching FOMC meeting. Remembering of the hawkish commentaries by some of the Committee members (Yellen, Harker) investors are hoping that the rate could be increased at the March meeting. However, key macroeconomic statistics – February labour market report and data on inflation are due to be published only a day before the meeting, so the regulator might have too little time for its analysis and decide not go for the rate change. It is also worth noting that the Pound is pressured today by the rumours of a new referendum on Scottish independence from the UK. According to The Times, Prime Minister Theresa May might agree to hold the referendum but only after the procedure of UK’s departure from the EU will have completed. Earlier in the day, the Pound was weakening against the Dollar having fallen to the level of 1.2380, but by now recovered all the losses. Against the Euro, however, it continues weakening (by 0.79%), the pair rose to 0.8530.

Metals are trading in narrow ranges today, gold in the range of 1258.50-1253.50 and silver in 18.36-18.29. The markets are waiting for tomorrow’s Trump speech. Brent and WTI oil prices are growing having reached their important resistance levels of 57.00 (an increase of 1.47%) and 54.70 (an increase of 1.31%) respectively. A possibility of further growth towards 57.50 and 55.00 remains, but more likely seems a downward correction towards lower borders of the sideways channels at 54.00 and 52.00.

The European and American stock market indices are trading in the red zone. The DOW and S&P 500 are correcting down from their February highs, losing 0.29% (fall to the region of 20770.0) and 0.31% (fall to 2361.0) accordingly. The FTSE 100 is losing 0.62% (decline to 7238.5), CAC 40 – 0.78% (to the level of 4832.5). The DAX showed the smallest decline out of all European indices – it fell by 0.43% (to the level of 11798.0).

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