Daily Market Analysis - Yesoptioon
Posted in the Hemet Forum
Since: Jul 14
#1 Jul 17, 2014
US Fundamentals Likely To Set The Tone On Thursday
With a large number of unexpected releases reported across the major developed economies on Tuesday, the leading asset markets experienced considerable volatility yesterday. With a host of key fundamentals also scheduled for release at todays market open, and as the day matures, this volatility is likely to continue throughout Thursdays session. Whats on the cards, and whats expected across the major assets? Lets take a look.
The majority of global equities markets closed up on Wednesday, as a combination of better-than-expected fundamental releases and impressive earnings reported across a number of US corporate sectors fuelled bullish momentum. Core PPI out of the US came out at 1.8% versus a forecast of 1.7%, and its raw counterpart came out at 1.9% versus a forecast of 1.8%. Combined with a better-than-expected earnings report from Bank of America (BAC) the second largest bank in the US the fundamental release boosted the Dow to yet further highs. Jobless claims, building permits and housing starts figure is all set for release as the US markets open, so look for better-than-expected releases across the street headliners to boost the Dow further, with an initial upside target of 17200.
In the UK, the claimant count change release of -36.3 K versus the consensus forecast of -27.0 K boosted the FTSE 100 from support around the 6730 mark to close just below what will likely serve as key resistance around 6800 flat. With no real market movers expected out of the UK today, look for a small correction to proceed a continuation of the bullish momentum. In this situation look for a close above the aforementioned resistance to offer up an initial upside target of 6830.
The two major is to keep an eye on today are the EURUSD and the USDCAD. Looking at the first of these two, Key inflation data set for release out of the Eurozone a few hours before the US markets open. A better-than-expected release could temporarily boost the strength of the Euro versus its US counterpart, and markets will be looking for a concurrent bias in the US jobless claims and Philadelphia Fed manufacturing index release to determine the direction. Look for better-than-expected data out of the Eurozone and weak data out of the US to reinforce in term support in the EURUSD around 1.3510, and strengthen the pair with an initial upside target of 1.3600. In the opposite scenario, one in which Eurozone reports weak data US reports strong data (this is the more likely two scenarios) look for a break below aforementioned support to offer up a medium-term downside bias in the pair.
Canadian market open, Statistics Canada is scheduled to release latest foreign securities purchases figure. The higher than expected reading forecast at 14.23 billion would likely strengthen the Canadian dollar versus its US counterpart, which would be bearish for the USDCAD. In this scenario, look for a break below 1.0735 to offer up an initial downside target of 1.0664.
Having collapsed during the first two days of the week, as a result of the shift to risk on sentiment with markets diverted attention from the troubles in Iraq, Syria and Israel, gold closed higher on a daily basis during Wednesdays session. The gain came as a result of US PPI data showing higher-than-expected inflation during June. Look for todays key fundamental releases out of the US (jobless claims, housing starts, and Philadelphia Fed manufacturing index) to offer up a medium-term bias in the yellow metal. If the releases come out better-than-expected, gold could reverse yesterdays bullish momentum and compound the early week losses. Look for an initial downside target of Wednesdays low just shy of 1294, and beyond that, look for a break towards in term support at 1285.
Source :- Daily Binary Trading Market Analysis
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