Published On: Tue, May 2nd, 2017

Midday Market Review


Today, US dollar is trading in both directions against its main competitors. The pair EUR/USD is relatively stable and is trading within the range of 1.0925-1.0900. It indicates the market’s waiting for tomorrow’s fundamental events: FOMC decision on the interest rate and publication of initial data on EU GDP for Q1 2017. The pair GBP/USD traded more actively today. In the first half of the day the quotes dropped to 1.2865. The market acted in view of statements by the US Minister of Finance Stephen Mnuchin who confirmed the possibility of issuing governmental bonds with 30 years of maturity. This could help finance President Trump’s infrastructure development plans. However, after the release of strong April data on the UK Manufacturing PMI (the indicator exceeded expectations and made up 57.3 points) the pair moved upwards and is now trading at the level of 1.2930. The quotes of USD/JPY continued to grow today and reached maximum levels from the end of March at 112.30. In the pair AUD/USD the American currency also strengthened. Australina dollar was under pressure after he Reserve Bank of Australia decided to keep the interest rate unchanged on the level of 1.50%. RBA Chairman Philip Lowe stated that the growing world reserve prices supported the Australian economy, but this did not help the pair, and its rate decreased to 0.7510.

Metals continue falling today, although not as radical as on Tuesday. By now gold has fallen to 1251.95, and silver to 16.80. Oil has been trading in both directions during the day. In the first half of the day Brent quotes grew up to the level of 52.00, and WTI – to 49.30, but by now that have already fallen to the opening levels (Brent – 51.40, WTI – 48.75). OPEC is planning to extend its agreement on the limitation of oil production, but what would be the terms of it, and would the exporters that are not OPEC members join it is still unclear. At the same time the volume of LTO production is growing in the USA. President Trump has signed an order that allows oil and gas production near the shores of the country which puts oil prices under pressure.

European indexes have been growing today: FTSE100 rose to the level of 7252.0, and CAC40 – to 5293.0. DAX is an outsider after falling considerably during the day and then moving to the opening level at 12470.0. American indexes are calm today as the market is waiting for tomorrrows FOMC meeting. DOW is trading within the range of 20950.0-20910.5, S&P500 – 2989.8-2386.0, and NQ – 5638.5-5624.5.

Forex Analysis

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