Daily Market Review: 5th November 2014


Today’s Hot Asset: EUR/USD


U.S Factory Orders exhibited a larger decrease than expected, decreasing by 0.6% instead of by the predicted rate of 0.4%, sending the EUR/USD climbing to 1.2570. Despite a decision by the European Commission to decrease their growth forecast, the pair did increase. The prediction to see growth of 1.7% in 2015 has been downgraded and the belief is that economic recovery will be slower than anticipated. Germany growth is currently expected to rise by 1.1% instead of the predicted 2%. The European central bank is being put under additional pressure by this development, to extend monetary stimulus and push the Euro down.

Traders are advised to watch the U.S. market today when pre-NFP data will be available. At 1.15PM (GMT) the ADP Non-farm Employment change will be released, a slightly higher total than last month is expected to show. Speculation that the NFP figure will be positive could start if the figure expressively tops expectations. The ISM Non-Manufacturing PMI will be released at 3.00PM (GMT)

Movement is slightly bearish. Support is found at 1.2440 and resistance is at 1.2540.

Trend:  Slightly Down


The GBP/USD traded sideways amongst 1.5970 and 1.6020 on Tuesday. the price bounced off its resistance and fell almost 70 pips Throughout the Asian session. An imaginable justification for this is that speculation arose before the release of the UK Services PMI which will come out today at 9.30AM (GMT). Trading is anticipated to show somewhat of a decrease from the prior of 58.7 to 58.5. Later today, the U.S. ADP Non-farm employment variation and ISM Non-Manufacturing PMI can also provide respectable trading opportunities.

The trend is slightly bearish. Support is found at 1.5920 and resistance at 1.6020.

Trend:  Slightly Down


Gold fluctuated between $1,164/ounce and $1,174/ounce, Yesterday. Throughout the Asian session, however, volatility picked up and the price plummeted to a 4-year low. No rise in physical demand was shown despite attractive prices. This could suggest market expectations for the price to drop even lower. The price is currently trading around $1,147/ounce and a reversal does not appear likely as of yet. The price may continue to decrease before today’s U.S. data which will be released at 1.15PM (GMT) and 3.00PM (GMT).

The movement is slightly bearish. Support is found at 1,140 and resistance at 1,174.

Trend:  Slightly Down


The USD/JPY lessened slightly and settled under 113.5 yesterday. Still, after the USD began to appreciate again, the pair rose above 114.5 to achieve a 7 year high. With bullish sentiment remaining ahead of U.S. data, we might see the price blast its way as high as 115. The Japanese Monetary Policy Meeting Minutes, set to release tonight, may offer some insight as to why the Bank of Japan decided to prolong the monetary stimulus to 80 trillion yen.

The trend is sideways. Support is found at 112.60 and resistance at 115.00.

Trend:  Sideways

Crude Oil WTI

At $75.90/barrel, WTI Crude Oil remained in a downward direction, hitting its lowest point since October 2011. Price may test its strong support, very soon, at a level of $75.00/barrel.

The U.S. Crude Oil inventories report is what traders should look out for today. On another important event this week, OPEC will release its annual report. The OPEC report may drive the price in any direction.

The trend is slightly bearish. Support is found at 75.00 and resistance at 78.50

Trend:  Sideways


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