Published On: Thu, Mar 2nd, 2017

Midday Market Review


Today, US currency is gaining ground against its main opponents to different extents. The USD/EUR pair tested the level of 1.0515 twice in two days, but still can’t break out. During the day, the euro gained ground to 1.0545 after the release of positive February data on Consumer Price Index in euro zone (the indicator reached 2.0% on YoY basis), but then decreased again.

Currently, the market is focused on the upcoming FOMC’s session in March and chances of interest rate hike in USA. Today, new comments by FOMC members William Dudley and Lael Brainard support the US dollar, too. Dudley stated that the chances to increase the rates are much higher now, and Brainard said that raising the interest rate in the nearest time makes sense. As a result, the USD went up by 0.32% (to 1.2260) against the GBP, by 0.57% (to 114.35) against the yen, by 1.30% (to 0.7590) against the AUD. The additional pressure on the AUD was added by weak January data on Australian balance of trades (the proficit totaled 1.30 billion instead of 3.82 expected). 

Metals are decreasing during the day. Gold lost 0.90% (price at 1239.00), silver lost 0,71% (price at 18.28). Crude oil prices are going down as well, reacting to API Weekly Crude Oil Stock report, which says that the country’s oils stocks increased the 8th time — by 1.5 million barrels — and USA oil stocks altogether set a new record of more than 520 million barrels. At the moment, Brent loses 0.95% (quotes at 55.70), and WTI loses 0.89% (quotes at 53.35).

Both American and European indices paused their growth today, but there were no correction for yearly maxima as well. Currently, the indices are trading within narrow ranges FTSE100 7385.0-7369.0, CAC40 4969.0-4954.0, DAX 12083.0-12045.0, DOW 21124.0-21084.0, S&P500 2392.0-2388.0. 

Forex Analysis

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