Published On: Tue, Mar 21st, 2017

Midday Market Review


Today US dollar is weakening against all the main competitors. It lowered by 0.86% against the EUR (the pair grew to 1.0810) and by 0.95% against the GBP (the pair grew to 1.2470). The European investors’ optimism is due to the two factors. The candidate for the President of France Emmanuel Macron won the TV debate against Marine Le Pen, which potential victory fears the market, and strengthened his leadership in the Presidential race. The GBP is growing due to the strong inflation data: in February the YoY Consumer Price Index grew by 2.3% and reached the maximum from the 2013 year. On the last meeting one of the Monetary Policy Committee members has voiced his support for the interest rate rise, and if the inflation is set on the reached level the regulator can raise the rate. From Friday and until today the USD/JPY pair is traded in the sideway channel within 112.90-112.35, waiting for the new drivers. In the morning the AUD/USD pair lowered to 0.7700, but after the publication of the RBA Meeting’s Minutes the AUD restored the positions and now is traded in the area of 0.7730. The investors were inspired by the positive data of the Australian economy: the GDP, the investment and consuming volumes were better than expected.

In the end of the last week the metals stopped to grow and now are trying to consolidate above the key levels: gold on the level of 1235.00, silver — at 17.40. In the morning the oil priced grew: the Brent reached the level of 52.15, the WTI — 49.40. The driver for the growth was the information leaks from the OPEC: the Organization is getting ready for the expanding of the OPEC+ agreement, as now it doesn’t reach its targets. However the prices are lowering at the moment: the Brent is traded at the area of 51.70 and WTI — at 48.90 due to the waiting of the API Weekly Crude Oil Stock publication, which is expected to grow again.

The key European indices show a mixed dynamics today. During the day the FTSE100 was lowering, but now it has restored the loss and is trading at the area of 7423.0. The DAX grew by 0.57% (to 12108.5). The growth leader is French CAC40, which increased by 0.89% and reached the level of к 5952.5. The French investors are inspired by the Emmanuel Macron’s victory in the TV debated. The US indices are growing today, too: the DOW reached the level of 20960.0, the S&P 500 — 2380.0.

Forex Analysis

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