Daily Market Review: 4th November 2014


Today’s Hot Asset: EUR/USD


Today’s Asian session sees the EUR/USD return to a level above 1.2500, slightly correcting itself from its previous drop. Events in Australia influenced the U.S. Dollar after the Reserve Bank of Australia forwarded a motion to maintain interest rate at 2.50%. Bearish sentiments are expected to return today due to important developments in Europe. The EU Economic Forecast will be available today at 10.00AM (GMT), if the outlook is downgraded by the report we may see the pair seeing support at 1.2440. At the same time, set to release is the EU Producer Price Index. The Index could increase fears for deflation. U.S. Factory Orders are set for release at 3.00PM (GMT), predictions are made for a decrease of 0.4%

The E.U. economic forecast report should be kept in trader minds as well today, dovish remarks may send the pair even lower.

Pair movement is sideways. Support on 1.2440 and resistance at 1.2540.

Trend:  Sideways


UK Manufacturing data had the GBP/USD react in a positive way, on Monday, the pair returned above 1.6000. Along that, U.S Manufacturing PMI speculations, prior to release, pushed down the pair. Keep an eye out today for the U.K. Construction PMI – Set to come out at 9.30AM (GMT). The data could pull the pair higher again. U.S Factory Orders will be announced at 3.00PM (GMT), predictions have a slight 0.4% decrease which would be far better than the 10.1% previous decline.

The trend is sideways. Support is found at 1.5920 and resistance at 1.6020.

Trend:  Sideways


Gold was traded Yesterday in a slender channel between $1,161/ounce and $1,173/ounce. The market can expect a price correction following a significant drop like that. Nevertheless, better than expected data on U.S manufacturing had speculation run deeper on whether or not the Fed could increase its interest rates sooner.

The gleaming metal is trading at a 4-year low and traders can now expect physical demand to pick up. The movement is sideways. Support is found at 1,160 and resistance at 1,178.

Trend:  Sideways


The pair climbed up to 114.20 Yesterday and was driven by the weaker Yen. Movement received an extra boost after release of U.S. Manufacturing data, which added to its positive climb. The pair is currently trading around 113.60. The uptrend may resume if today’s figures from the U.S are better than expected

For tomorrow’s Asian session, pay attention to the Japanese Average Cash Earnings, posted 1.30 AM (GMT).

The trend is sideways. Support is at 112.60 and resistance at 114.20.

Trend:  Sideways

Crude Oil WTI

WTI Crude Oil is presently trading around $77.30/barrel, after falling harshly below $80/barrel.

Saudi Arabia presented a price cut on exports and sent the commodity into a decline. The cut came following decreasing demand which pushed export in Saudi Arabia to a 4 year low. The price will reach a three year low if it drops below $77.30/barrel, it is already at its lowest value point since June 2012

Competition with other manufacturing countries may bring additional pressure and we can expect to see price moving even lower. Trend is slightly bearish. Support is found at 77.30 and resistance at 80.00

Trend:  Sideways


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