Overview of the major global financial markets for 13 October 2014

Monday was the stock market is quite positive, especially given the complete lack of economic news. Hong Kong’s Hang Seng and Japan’s Nikkei were able to add in the price, and the second finally corrected after a long fall. Germany’s DAX and Britain’s FTSE also followed suit and decided to adjust the incurred losses last week. American DJIA and NASDAQ behaved in different directions, showing restrained dynamics.

The weakness of the dollar has not been canceled yet, although its sales are already more moderate pace, and highlights not all pairs. For example, USD / RUB new historical highs at 40.46 and closed trades just a few points below. Meanwhile, USD / JPY down to a month low at 107.05 and closed trading near 107.30. EUR / USD made ​​attempts to gain a foothold above 1.27, but by the end of the day it did not manage to do it. Regular weak data on the index of wholesale prices in Germany were completely ignored by the market. GBP / USD tried unsuccessfully to get back above 1.61, but the auction closed in the area of ​​1.6060.

Oil prices continued to go down and once again updated the local minima — this time in the area of ​​88.40 for Brent. Trades have been completed in the area of ​​89.20. Energy continues to be under pressure all the same factors — the slow pace of growth of the European economy, threatening a decline in demand and growing production volumes from the United States.

Gold and silver have been attempting to pass new levels of resistance against the backdrop of weakening demand for the American currency and still unstable position of the stock market, however, marked the highs for the day were not deterred. XAU / USD failed to break 1237.72, and retreated to the area of ​​1230 per ounce at the close. Meanwhile, XAG / USD trades completed in the same place and start — 17.40.

Forecast for Tuesday, October 14

Stock Market

Note the index Nikkei (NKD) — in addition to decent fundamental reasons for the growth of the index in the medium term, in the short term, you can also expect a recovery of the asset after a long fall from the beginning of October. In addition to correctional grounds in favor of growth of the index can speak and the fact that at the end of last week’s Nikkei crossed the 200-day moving average on the daily chart. If the breakdown below is not confirmed, we can expect recovery benchmarks in the area of ​​15,500 Moreover, the current low levels look pretty attractive to enter Long in the long-term strategy.

Commodities

Brent crude oil continues to go down, and its behavior is due to a declining geopolitical factors, as well as economic. Commercial stocks in underground storage for the United States the results of the previous week increased by 5.02 million barrels to 361 million, and production reached 8.88 million barrels per day, which is the highest level since March 1986. From the point of view of technical analysis closest major support level now stands 88.25 mark, which is the most the lowest since 2009. Overcoming it will make the next goal of the movement 82 dollars per barrel.

Foreign Exchange Market

USD / RUB continues to be under pressure from too low oil prices and the lack of progress in the relations between Russia and the West. It made a couple of back to historical highs, and it is possible that today the pair will move another 10-15 points. However, the good news is already there — the IMF in their forecasts for the economy of Russia laid the probability of the lifting of sanctions on the part of Europe in 2015. In addition, oil prices retreated yesterday to close on lows. Thus, we can expect that the pair still begin correction from current levels, especially given the general oversold even the ruble against other currencies of developing countries (5-7%).

Of the major currency pairs can attract the greatest interest GBP / USD, as today we will see the publication of data on inflation. Recall that it was a factor restrained price pressure stops the Bank of England from the transition to a policy of monetary tightening. Given the general trend of slowing economic indicators, it is possible to see the lower levels of the index CPI, which may once again put pressure on the British and send it to the area of ​​1.6020.

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Overview of the major global financial markets for 13 October 2014 | Web Trade For All - Forex trading, analytical reviews of the market and help for beginners