Published On: Thu, Mar 16th, 2017

Midday Market Review

InstaForex

After the significant lowering on Wednesday, caused by the negative reaction of the market to the results of the FRS meeting, today the USD is stable and is trading against the main competitors in the narrow channels. The exception is the GBP, as the USD weakened against it by 0.58% (to the level of 1.2370). The growth of the pound is due to two major factors. Queen Elizabeth II signed the law of Brexit, which was approved by the Parliament earlier. This lets Theresa May the right to begin the UK leaving the EU negotiations. Also the Bank of England interest rate decision was published today: the rate stays on the same level of 0.25%, however, one of the Monetary Policy Committee members voted for the rate increasing. It was the first vote for the rate increase from the June, 2016, which means that there are no more consensuses on this key issue in the Bank of England.

The other instruments are trading calmly. The EUR/USD pair is traded within 1.0745-1.0710, despite the EUR is supported by the Netherland news, where the Geert Wilders party lost the elections to the Prime Minister Mark Rutte party, and the positive EU Consumer Price index (the index stayed on the same level of 2.0% in February). The AUD/USD pair is traded within 0.7700-0.7675, the USD/JPY pair — within 113.50-113.15.

The USA FRS refusing to tighten the monetary policy supports the metal prices. Today the gold price grew to the level of 1233.65 (by 1.2%), the silver price — to 17.52 (by 1.5%). Now the prices are trying to lower, but the growth is still possible. In the morning the oil prices grew, due to the EIA report of USA oil resources lowering by 0.237 million barrels, but now the prices began to lower again lost the gained advantage. The Brent price is 51.70, the WTI — 49.10.

In the morning the leading European and US indices grew, and the European ones renewed the year maxima: FTSE100 — 7441.9, DAX — 12177.0, CAC40 — 5031.5. After the signing the Brexit law they begin to lower. The market is waiting for the consequence of this step. Now the FTSE100 is traded in the area of 7415.0, DAX — 12080.0, CAC40 — 5011.0. The same scenario is in the USA: DOW is traded in the area of 20989.0, S&P 500 — 2384.0.

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