Published On: Wed, Mar 15th, 2017

Midday Market Review


US dollar was decreasing against its main competitors, but managed to return to its positions. American currency lost the most points against GBP: during the day, quotes were reaching 1.2255 (0.83% growth). British currency is strengthening because of several factors: positive labor market data (unemployment rate decreased from 4.8% to 4.7%, claimant count decreased by 11.3 thousand, and also results of poll in Scotland, which show that small amount of citizens agree with Britain leaving EU (43%). GBP/USD is currently trading at 1.2200, EUR/USD — at 1.0620, USD/JPY — at 114.70, AUD/USD — at 0.7590. In general, market is waiting for FOMC’s decision on interest rate. Nobody doubts that the interest rate hike will happen, so traders are interested in the next steps of the regulator. Is FOMC going to tighten monetary policy, or will it make a pause? How much hikes are they gone to make — three or less? Investors will try to get this information from Janet Yellen’s commentary on FOMC’s decision. The possibility of interest rate hike is already incorporated into the market price, so probably US currency may strengthen just a little, but Janet Yellen’s commentary can move the market signigicantly.

After morning growth, metals are decreasing again during the day, and they lost all previous positions. Currently, gold is trading at 1200.00, silver is trading at 16.85. Crude oil quotes are stable today. Brent is trading within 51.10-51.90, WTI — within 48.70-49.20. Tuesday growth was caused by weekly report of American Petroleum Institute, saying that USA oil reserves have decreased by 0.531 first time counting from last December. Today, traders expect that this information is confirmed by API Weekly Crude Oil Stock report. If the data is confirmed, quotes may continue to grow.

EU indices were attempting to grow, but then continue decreasing, as it became known that German policy is making searches in offices and homes of top managers of Audi. Heads of the company are suspected of falsifying ecological data of cars manufactured by the company. In general, trading range is still narrow while the market is waiting for FOMC’s decision. FTSE100 is trading within 7382.0-7355.5, DAX — within 12025.0-11975.0, CAC40 — within 4985.0-4963.5. Situation is the same with US indices: DOW is trading within 20885.0-20850.0, S&P500 — within 2373.0-2356.0.

Forex Analysis

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