Published On: Tue, Mar 7th, 2017

Midday Market Review


Today, the American dollar is growing against  euro and GBP. Euro is under pressure of negative January data on industrial output in Germany. The indicator decreased by 7.4%, which is much more than expected, and as a result the pair decreased to 1.0557 (by 0.21%). GBP is also weakened against USD. At the moment, the pair reached its minimum within the period starting from January: 1.2180 (lost 0.45%). This is due to the fact that it is not know yet if the Great Britain is leaving EU; the market is waiting for the revoting in House of Peers on this question. USD/JPY is trading within the narrow range of 113.70-114.00 today. Tomorrow, the investors expect final data on Japanese GDP for last year Q4. AUD/USD was trading in both directions, and during Asian trade session it went up to 0.7630. However, after RBA’s decision on leaving the interest rate was published, it started decreasing at the level of 1.50%, and AUD lost its positions (now trading at 0.7600).

Metals are still decreasing during the day. The market believes in interest rate hike in March. As a result, gold lost 0.50% (decreased to 1221.00), and silver lost 1.19% (decreased to 17.54). Crude oil prices are growing after International Energy Agency published its new forecast, stating that after 2020, the market may experience crude oil deficit resulting in a significant price spike. At the moment, Brent increased by 0.78% (56.30), and WTI increased by 0,76% (53.70). Uptrend stiil can easily change for the worse if the closest weekly reports by API and EIA show that crude oil and refined products reserves increase in the USA.

Today, the market is tranquil, and both European and American indices are trading within narrow side ranges: DAX 11994.0-11941.0, FTSE100 7367.5-7346.8, CAC40 4989.5-4952.5, DOW 20962.5-20922.5, S&P500 2374.0-2368.5.

Forex Analysis

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