Published On: Fri, Mar 3rd, 2017

Midday market review


Today, market participants’ attention is focused on the US where few Fed officials are due to make public appearances. First, Vice President Stanley Fischer will speak of Fed’s decision-making on monetary policy and later Chair Janet Yellen is going to present an economic forecast. Markets expect them to have a final say about the possibility of an interest rate hike at the March meeting. If the hawkish tone that was sounded earlier by the committee members (Harker, Dudley, Brainard) remains, the American currency might significantly strengthen against its competitors. At present, the Dollar is trading in narrow ranges. The only exception is the EUR/USD pair where the Dollar lost 0.64% (the price rose to 1.0570) despite poor data on January retail sales in the eurozone (on a month-to-month basis, the index fell by 0.1% instead of a 0.3% growth, while over the year it grew by 1.2% instead of the expected 1.5% growth). In pairs with the Yen and Australian Dollar, the American currency is trading near its opening levels of 114.40 and 0.7570 accordingly, while against the Pound it strengthened by 0.45% (to the level of 1.2210).

Metals are falling prior to the FOMC members’ speeches, though not as sharp as on Thursday. Today gold reached the level of 1225.35 (a decline of 0.88%) while silver touched 17.60 (fall of 0.68%). Oil price stabilised near the bottom borders of their sideways ranges. After Thursday’s drop, Brent has been trading in the range of 54.95-56.40 and WTI in 52.40-53.00. Oil is waiting for new impulses, and growth possibility remains. However, if Baker Hughes report that is due later today shows that the number of new oil rigs increased, oil prices could resume their fall.

After a morning decline, the European and American indices are trying to grow. The DAX and FTSE 100 almost recovered their losses having risen to the levels of 12039.5 and 7370.0. The CAC 40 is taking the lead – having retested yesterday highs it strengthened by 0.88% (to 4998.5). The DOW also recovered yesterday’s losses and, as a result, strengthened by 0.19% (to 21031.0) while the S&P 500 after reaching the level of 2378.0, resumed its fall. 

Forex Analysis

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