Overview of the major global financial markets for 14 October 2014

Tuesday losses suffered losses only Asian stock markets, as belatedly won back all the fears about slowing down growth. Meanwhile, Europe and America went into growth. Germany’s DAX and Britain’s FTSE gained by 0.42% and 0.15%, respectively. American DJIA and NASDAQ also went up to close in positive territory.

Currency market on Tuesday behaved very active, as economic reports could trigger emotions of investors. Observed in the morning sales dollar was quickly replaced by a new wave of growth of currency on the back of weak economic data from the UK and the eurozone. British inflation index rose by only 1.2%, while expecting him to 1.4%, showing a 12 month fall in food prices, dissuasive effect on the overall index. On this GBP / USD had fallen below 1.60 and slipped to 1.5903 — a minimum in November of 2013. Meanwhile, the German index of investor sentiment from the ZEW institute gone into negative territory to -3.6 pts, pointing to the fact that Europe’s largest economy is indeed experiencing problems. This resulted in EUR / USD to 1.2650 mark, forcing back all earned a day earlier. Meanwhile, USD / JPY has updated monthly lows at 106.66, retracing the area of ​​107.00 at the close. USD / RUB continued to incur losses due to falling oil prices, when Brent was testing a new 2.5-year low, the pair rose to the record level of 40.87.

Oil prices continued to go down and once again updated at least 4 years ago — this time in the area of ​​84.87 for Brent, near which have been completed and tenders. Regular news that the European economy is suffering not best times, played a major role in the fall of prices for «black gold».

Gold and silver continue to receive support from the panic in the markets. XAU / USD failed to break the monthly maximum 1238.14, and retreated to the area of ​​1232.69 per ounce at the close. Meanwhile, XAG / USD finished trading just below the opening — around 17.35.

Forecast for Wednesday, Oct. 15

Stock Market

Today, pay attention to the European stock indices FTSE and DAX, as they will get an incentive on the part of the weak inflation rates, scheduled to be published in Germany as part of the report CPI, and the UK as part of a report on the labor market (a measure of wage inflation). Recall that the lower rates of price pressure, the higher the probability that the national central banks will prefer to refrain from an early transition to the regime of tightening, as in the case of the Bank of England. And in the case of the ECB market is already starting to price the probability of quantitative easing, which may return the stimulus for the growth of the European indices. An additional factor may be a support and a corrective pullback after the losses suffered last week.

Commodities

Gold continues to trade higher, as the market participants are beginning to converge in the view that the Fed can not jump to the beginning of the tightening cycle of monetary policy due to the slowdown in the global economy. Contracts are to overcome the resistance in the region of 1238.14. Given the fact that planned to publish data on retail sales the United States can get out rather weak, according to the latest projections, the precious metal can get a new impetus for growth. In addition, the theme of the flight from risky assets in the form of stock market also continues to push the XAU / USD up. We are looking for successful entry point Longo and every downward correction.

Foreign Exchange Market

USD / RUB still dominated by falling oil prices. And as long as they continue to go down, the pair will move up. Unfortunately, the weak economic data from Europe support the sale of «black gold», provoking a wave of concern about the low energy demand. After the close of trading in the ruble oil prices marked a new 4-year low, which is able to result in a gap up on the USD / RUB 15-20 cents. However, a further decline in energy prices can be restrained as he approaches the point at which oil production becomes unprofitable in many countries. As soon as the «bottom» will «find» in Brent, we will see a correction of the pair of current peaks.

Today, for the GBP / USD will have a new test, and, despite the fact that the labor market shows good condition recently, investors will focus their attention on the «salary inflation.» Growth rate of average weekly earnings in the case of the further slowdown may further put pressure on the British pound, as it does not leave any hope that the core inflation still exists. In this case, we can expect the level of 1.59 to test the further aim at 1.5850 (low of November 2013).

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Overview of the major global financial markets for 14 October 2014 | Web Trade For All - Forex trading, analytical reviews of the market and help for beginners