Daily Market Review September 13



Industrial production in China rose to 6.3 percent on a yearly basis as seen earlier today, suggesting that the economy may be stabilizing. Compared to the month of July, growth in the industrial production grew faster in August and retail sales data was also seen hiking up to 0.4 percent in the same month. While investors eye Chinese data release today, elsewhere crude prices were dragged lower today as traders took out their share of profit.

An increase in drilling in the U.S. fueled concerns on the crude market which later provoked investors to take profits after a slight rise of 1 percent in oil prices. Decline in U.S. inventories caused crude prices to look stable during the past week and investors will eye another inventories data on Wednesday. Crude prices could rise further if readings are again bearish. Brent crude futures traded around $47.98 a barrel, being down by 34 cents. U.S. west Texas Intermediate were also down by 41 cents.

Trending today are data releases by the side of UK, such as the Consumer Price Index at 08:30 GMT. In the Eurozone the German Zew economic sentiment for September will be the highlight. Moving on, as concerns about interest rates eased slightly, U.S. stocks climbed. Stocks rebounded from earlier losses incurred in the month of June and rose yesterday. Fed officials signaled that the Fed might adopt a slow approach to raise rates, erasing previous worries concerning rates.

Technical Analysis:
Technically the EURUSD pair is expected to rebound from the current level of $1.123. After consolidating for a longer time on the charts yesterday, this pair should now seek to break above the resistance line of 1.126 level. Yesterday, this pair was seen initiating the session around the 1.123 level and slowly consolidated to slightly rise to 1.1249 level. After being pulled down to the 1.121, the pair hiked up again to close the session around the 1.124 level. The German Zew economic sentiment data is awaited to boost the pair later today, therefore keep an eye on it.

The pair USDJPY may not find the solace it has been looking for on the charts since yesterday. After several pullbacks, this pair is currently taking a downside trend and mostly consolidating within a specific range. Starting the session at the 102.6 level yesterday, the USDJPY pair later was cruelly pulled down to the 101.7 level by several pullbacks. The downturn began in the initial hours of trading and later the pair tried to recuperate some gains but ended up consolidating. Currently, the pair hovers around the 101.9 level, while the Japanese yen is expected to remain bullish.
It may be a day for the GBPUSD to eventually rise as the CPI data is being eyed by most investors on the UK trading floors. Given the weakness of the US dollar, the GBPUSD began to climb up the session as seen yesterday and looks likely to pose ahead of the data release today. Yesterday, the session for this pair started at the 1.327 level and consolidated for a while. After edging down slightly, the pair GBPUSD upped higher by the help of momentary jumps. At the 1.329 level, a change is signaled by the Ichimoku cloud for today and currently the cloud hovers below the candles suggesting a bullish session.

 

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