Market review 21.03.2017

1. Daily Market Review
Market Review was generated at 09.30 GMT+2 on Tuesday 21st of March 2016
By Michalis Markides

2. General Market News
The UK economy will be under scrutiny today with a pair of updates, starting with the February report on consumer inflation, followed by this month’s CBI
Industrial Trends Survey data. Meantime, keep your eye on the South African rand, which is one of the strongest currencies at the moment relative to the
US dollar. The Bank of England (BoE) decided to hold its policy interest rate at a record low of 0.25% last week while inflation is expected to edge up to a
three-year high in today’s update for February. Economists expect that consumer prices at the headline level will increase 2.1% for the year through
February, topping the two-percent mark for the first time since late 2013, according to TradingEconomics.com’s consensus forecast. The unclear path of
Brexit in the months ahead may worry the monetary mavens at the Bank of England, but the top brass at large financial institutions expect that the UK
economy will continue to expand at a solid pace this year. US stock indices closed slightly lower Monday for the third straight day of losses, as trading was
muted without major economic or corporate news, with financials and energy stocks putting pressure on the S&P500.
Forex News
The EUR/USD pair founds fresh demand near 1.0750 region, sending the rate back towards daily tops, as the sentiment around the common currency
remains underpinned amid latest news of a Macron win at the first French presidential debate. The USD/CAD pair seems have entered a consolidative
phase and has been confined within a broader trading range above the 1.3300 handle. The Sterling is trading on a better mood vs. the buck ahead of the
opening bell in Europe on Tuesday, taking GBP/USD to the 1.2370/80 band for the time being. Friday’s strong decline took EURGBP back to the 13-day
moving average. It was the failure to break below that crucial level that undermined negative signals to the degree that this week’s outlook was
considered unclear. The importance of the 13-day average though was proved by modest demand from that point on Monday, upside that has been
extended in Asia. USDJPY remains below the 100 day moving average and the main support is at ¥111.75. Only a break below could trigger strong selling
interest and a surge in vol.
Metals and Commodities News
Gold prices edged lower on Tuesday, failing to break a key resistance but hovered near a two-week high hit in the previous session on prospects of a less-
hawkish Federal Reserve policy. Spot gold was down 0.4per cent at $1,228.61 per ounce. In the previous session, it touched its strongest since March 6 at
$1,235.50. US gold futures fell 0.4 per cent to $1,228.60. Oil prices rose early on Tuesday on expectations that an OPEC-led production cut to prop up the
market could be extended, and as strong demand was seen to slowly erode a global fuel supply overhang, Reuters reported. Prices for front-month Brent
crude futures, the international benchmark for oil, were at $51.76 per barrel at 0043 GMT, up 14 cents, or 0.3 percent, from their last close. U.S. West
Texas Intermediate (WTI) crude futures were up 6 cents, or 0.1 percent, at $48.28 a barrel.

3. Name S3 S2 S1 Pivot Points R1 R2 R3
EUR/USD 1.0659 1.0691 1.0715 1.0747 1.0771 1.0803 1.0827
USD/JPY 111.92 112.18 112.37 112.63 112.82 113.08 113.27
GBP/USD 1.2211 1.2272 1.2315 1.2376 1.2419 1.2480 1.2523
USD/CHF 0.9923 0.9938 0.9962 0.9977 1.0001 1.0016 1.0040
USD/CAD 1.3238 1.3270 1.3309 1.3341 1.3380 1.3412 1.3451
EUR/JPY 119.74 120.20 120.54 121.00 121.34 121.80 122.14
AUD/USD 0.7625 0.7653 0.7692 0.7720 0.7759 0.7787 0.7826
NZD/USD 0.6921 0.6956 0.7005 0.7040 0.7089 0.7124 0.7173
EUR/GBP 0.8604 0.8629 0.8660 0.8685 0.8716 0.8741 0.8772
EUR/CHF 1.0644 1.0670 1.0698 1.0724 1.0752 1.0778 1.0806
GBP/CHF 1.2204 1.2255 1.2299 1.2350 1.2394 1.2445 1.2489
GBP/JPY 137.23 138.03 138.56 139.36 139.89 140.69 141.22
Gold 1225.36 1227.33 1230.46 1232.43 1235.56 1237.53 1240.66
Silver 17.267 17.316 17.377 17.426 17.487 17.536 17.597
Brent Oil 50.17 50.59 51.10 51.52 52.03 52.45 52.96
Crude Oil 46.90 47.37 47.80 48.27 48.70 49.17 49.60
Daily Support and Resistance Levels
Date Time
(GMT)
Cur. Impact Event
Tue
Mar 21
9:30am GBP High CPI y/y
9:30am GBP Medium PPI Input m/m
9:30am GBP Medium Public Sector Net Borrowing
9:30am GBP Medium RPI y/y
All Day EUR Medium ECOFIN Meetings
10:35am GBP High BOE Gov Carney Speaks
12:30pm CAD High Core Retail Sales m/m
12:30pm USD Medium Retail Sales m/m
12:30pm USD Medium Current Account
Tentative NZD High GDT Price Index
Economic Calendar
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Disclaimer: The information in this review comprises market updates and personal opinions and should not be taken or
misunderstood as investment advice.