Published On: Fri, Apr 28th, 2017

Midday Market Review


Today the US dollar has been weakening against European competitors. The pair EUR/USD grew to the level of 1.0945, and GBP/USD – to 1.2955. European currency was supported by strong consumer price index data that grew above expectations in April and reached the level of 1.9%. On the other hand, US dollar is under pressure from negative data on US GDP. In Q1 the index made only 0.7%.

British pound is strengthening despite weak GDP data that increased only by 0.3% in Q1 2017. Pound still seems a beneficial currency for the investors. Early partiamentary elections scheduled for June 8 will help the Prime Minister Theresa May to gain stable majority and to strengthen UK’s positions during Brexit negotiations. A letter by the Chairman of the European Council Donald Tusk was published today and stated that before beginning negotiations the parties had to resolve a number of current issues. Therefore the start of the discussion may be postponed.

In the first half of the day the pair USD/JPY dropped to the level of 111.10 but is currently testing the level of April maximums at 111.70. Today’s set of economic releases from Japan left the investors with mixed feelings. Retail sales in March grew by 2.1%, and production output decreased by 2.1%.

 The pair AUD/USD rose to the level of 0.7485 in the first halg of the day but by now has lost its positions and is trading around 0.7460.

In the first half of the day metals made growth attempts, but by now moved to correction. Gold is trading around 1265.30, and silver moved to the opening level of 17.20.

Oil prices are growing today in the framework of correction: Brent reached the level of 52.50, and WTI – 49.74. Investors are waiting for new data on the number of Americal oil rigs from Baker Hughes after which the fall of the quotes may resume.

European stock market is generally calm today. CAC40 is trading within the range of 5288.8-5264.0, and DAX – 12451.5-12403.0. FTSE100 has been an outsider for the second day in the row and has decreased to 7191.3. American indexes are also stable: DOW is trading within the range of 20988.0-20929.0, and S&P500 – 2390.0-2385.0. A number of US companies are to report on their income today. The most important of them are Exxon Mobil, Chevron, Colgate-Palmolive, and Goodyear Tire & Rubber.

Forex Analysis

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