Published On: Mon, Mar 6th, 2017

Midday Market Review


Today during the day weak US dollar strengthened to its major rivals after weakening on Friday. Mixed reaction of the market was caused by the comments Fed’s Chairman Janet Yellen, who noted that there is no reason to believe that the FOMC is late with interest rate hike and its policy is keeping pace with economic recovery. Investors interpreted this as a new sign of delay in interest rate hike. Currently, the dollar against the euro has added 0.33% (to 1.0575), against the pound it rose by 0.35% (to 1.2245). The USD/JPY pair is trading near the opening level of 113.75. But in a pair with the Australian dollar the US dollar lost 0.50% (the pair rose to 0.7610 area). AUD was supported by a strong January retail sales data in Australia, which rose by 0.4% after a decline in December of 0.1%.

Metals are gradually decreasing, gold lost 0.51% (to 1230.30) and silver lost 1.0% (to 17.75). Currently, there is an attempt of an ascending correction.

Crude oil in the morning lost some positions, reacting to the data on the increase in the oil rigs in the United States, which amounted to 609 units, the highest rate since October 2015. Brent dropped to 55.20 and WTI went to 52.80, but during the day the losses were recovered, and now Brent is trading at around 55.80 and WTI – in the area of ​​53.40.

European and US indices are in general decline. They are under pressure after reports of Deutsche Bank, who’s going to issue new shares (for the third time since 2013) worth of 8 billion euros. As a result, CAC40 dropped to 4964.0, DAX – to 11926.0, and the FTSE100 – to 7340.0. US indexes DOW and S&P500 have also declined to the levels of 20900.0 and 2369.0 respectively.

Forex Analysis

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