Published On: Mon, Mar 20th, 2017

Midday Market Review


In the first half of the day the US dollar dropped down closer to its main competitors, but by now it has regained strength.

The EUR/USD pair is trading almost at the two-months maximum of 1.0750. GBP/USD is approaching its three-weeks maximum with 1.2390. The AUD/USD pair is trading at about 0.7720, and USD/JPY — at 112.60 (around its three-weeks minimum). The market is waiting for two major events today. The head of FOMC Chicago Charles Evans is to make a speech in New York and is expected to address current economic conditions and monetary policy. Also today is the first day of TV debates in the French presidential campaign. There is no secret that this type of campaigning often has a huge impact on the views of the voters, that is why the market awaits their results and fears that the positions of Marine Le Pen may strengthen. In this case Euro may undergo considerable pressure.

After morning growth gold had a slight decline to the mark of 1231.40. However, it is still around its monthly maximums and has potential for resuming growth. Silver is trading in the narrow range of 17.32-17.41 today. Oil keeps declining since Friday: Brent dropped down to 51.13, and WTI – to 48.50. The quotes are pressured by the continuing increase of the number of drilling rigs in the USA, which indicates further expansion of the share of American LTO in the market. The ambiguity around the extension of OPEC+ also adversely affects growth. Last week the Minister of Energy of Saudi Arabia claimed it possible to extent it, however the Ministry of Energy of the Russian Federation replied it was still early to speak about it.

Leading European indexes were generally traded within narrow ranges during the day: FTSE 7401.5-7430.0, DAX – 12072.5-12045.0, CAC – 5001.5-5025.0. The market waits for the results of the French presidential debates and for the development of the scandal around the Audi concern suspected of lowering the values of harmful emissions from its cars. American indexes kept growing today: DOW reached 20942.0 (increase by 0.20%), and S&P500 – 2377.0 (by 0.12%).

Forex Analysis

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