Published On: Tue, Mar 14th, 2017

Midday Market Review


US dollar is still decreasing against its main opponents, market is making allowances for possible FOMC interest rate hike on Wednesday. By this time, dollar strengthened against euro by 0.22% (to 1.0625), to Australian dollar — by 0.39% (to 0.7539), to pound — by 0.85% (to 1.2110). Now the price is trying to restore. British currency is additionally suppressed by the fact that it is not know yet if the Great Britain is leaving EU. On Monday, Theresa May received the right to start Brexit negotiations (both Houses of Parliament voted for it). The market expected the negotiations to start today, but Government members moved them to the end of the month. USD/JPY was strengthening during the day, by this moment the price was correcting to the opening level of 114.90. The growth will probably continue closer to FOMC making decision.

Metal are trading within the narrow ranges: gold — 1200.20-1205.00, silver — 16.85-16.97. Market is not stabilized yet and after the FOMC session the decrease started in the beginning of the month will continue. Crude oil quotes were stabilized and even growing during the day: Brent to 50.55, WTI to 47.90. OPEC report was the reason: oil extraction cut agreement was accomplished by 85% in February, but the leading player on the market, Saudi Arabia, will raise the extraction levels (in February, they extracted 10.011 million of barrels a day). The market is waiting for weekly oil reserves reports in USA from API and EIA. New increase of crude oil reserves can lead to lowering oil quotes.

European and American indices had decreased a little bit, taking into consideration Netherlands election outcomes and instability in Great Britain, but market is waiting for the results of FOMC session in March. Currently, the quotes are in the red zone, FTSE100 at the level of 7378.5, DAX — 11985.0, CAC40 — 4976.0, DOW — 20900.0, S&P500 — 2365.0.

Forex Analysis

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