Daily Market Review September 15



UK unemployment rate remained unchanged at 4.9 percent, a slight decline from readings obtained in September 2005. On the other hand, other data releases showed little growth for the UK economy as jobless claims rose to only 2.4K which was worse than expected. However, with data such as the UK interest rate decision releasing at 13:00 GMT today, the chart could change its trend. Elsewhere, the USD looks likely to up higher as the Yen incurred losses overnight.

Most U.S. indices were pulled back in their respective trading session yesterday afternoon due to drop in crude prices. Indices might maintain a choppy trade as the Federal Reserve and the Bank of Japan are set hold meetings next week. Investors and traders will keep a close eye on policy rates changes and gauge the rally that can be generated amidst this turmoil. The Dow Jones Industrial Average fell by 0.2 percent to settle at 18034.77 points, while the S&P 500 declined by 0.1 percent to trade at 2125.77 points.

Surprisingly, only the NASDAQ rose by 0.4 percent to trade at 5173.77 point. All the chaos on the U.S. market was caused as energy shares constantly retracted from earlier gains. For a second consecutive day, energy shares were led down. Technology shares like Apple rose by 3.5 percent as the latest iPhones were unveiled last week. A nice momentum is likely to continue for the technology giant. The market is worth a watch today with data releases such as CPI in Eurozone and policy rates decision in UK.

Technical Analysis:
The EURUSD is trading near daily highs after trying to cross above the resistance line of 1.1240 in the session yesterday. Eventually the pair EURUSD climbed higher than the said resistance level and moved up to the 1.127 level. The pair looked likely to amass gains around the vicinity but later on the pair was dragged lower to the 1.124 level. After consolidating for a while, the pair closed the session at the 1.1245 level. Currently, the pair is heading downwards indicating that the market holds tight before the CPI data release in the Eurozone at 09:00 GMT. Therefore, trade carefully on this pair today.

The way in which the USDJPY pair climbed up the charts on Wednesday, the pair adopted the same trend in a downtrend. Well, the chart depicted almost the same kind of trend, with slight momentary jumps and pullbacks. The pair USDJPY commenced the session around the 102.7 level yesterday and was pushed upwards to the 103.2 level in the initial hours of trading. Later, the pair fell due to several pullbacks and the session closed around the 102.5 level. The U.S. core retail sales data release today at 12:30 GMT will give more indication on the trend of this pair, therefore do keep an eye on fundamentals.
The GBPUSD pair looks likely to maintain gains around the 1.321 level and may keep the same trend until the Bank of England announces the interest rate decision at 13:00 GMT today. Yesterday, the pair GBPUSD upped slightly higher as job data numbers remained unchanged. The pair continued to dwell around the same vicinity at 1.322 level but was later pulled down to the 1.314 level. After taking an uptrend, the pair closed the session at the 1.326 level. The pair is expected to turn bullish if sentiment on BoE policy rates turn positive later today. Keeping an eye on this pair would be wise today.

 

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