Daily Market News – January 27th, 2016

Daily Market News – January 27th, 2016


Hello and welcome to HiwayFX market news for January 27, 2016. On Wednesday, the EUR/USD pair was trading below the level of 1.087 by losing about 0.2%. The EUR/USD pair traded largely subdued, despite a broadly lower American dollar as the solid recovery in oil prices lifts the sentiment and diminishes the bids for the safe-haven Euro. The key event for the pair is releasing the statement from the Federal Reserve meeting. While the central bank is almost certain to keep interest rates unchanged investors are keen to see its latest economic outlook, given the turbulent start, to global financial markets this year. “If the statement refers to falls in oil prices and turmoil in financial markets or points to their impact on the outlook for inflation and growth that could be seen as being dovish and lead to selling pressure against the dollar” Masafumi Yamamoto, chief FX strategist at Mizuho Securities in Tokyo, said in a research note. The resistance levels for the euro are 1.0895 and 1.0922. The support levels for the euro are following 1.0839 and 1.0785. This morning, the AUD/USD pair trades above the key level of 0.700 by adding over 0.3%. “The Australian dollar edged higher after one measure of inflation came in slightly above forecasts even as restrained price pressures overall suggested there was room for further cuts in interest rates. While measures of underlying inflation slowed to the floor of the Australian central bank’s target range speculators had been positioned for a weaker number,” Reuters writes. “Underlying inflation this low is usually a recipe for an RBA cash rate cut. But not this time: or at least not yet” Paul Bloxham, chief economist for Australia and New Zealand at HSBC, said in a research note. , “While the labour market and activity surveys are still holding up, the RBA is unlikely to cut rates. This pretty much rules out a cut next week,” he said. The resistance level for the Australian dollar are 0.7050 and 0.7076. The support levels for the AUD/USD pair are 0.6992 and 0.6980. Today, Gold consolidates near to the level of $1120 per troy ounce after a significant growth day before. Gold rises as Chinese investors lost faith in collapsing stock markets and a weakening currency and snapped up bullion. According to Bloomberg, “Investors took advantage of the lowest global prices in almost six years to stock up on bullion amid share market gyrations and concerns the central bank would let the currency depreciate to boost slowing growth in the world’s second-biggest economy. Consumers were also buying in the run-up to Chinese New Year in February, the peak demand season.” The resistance level for Gold are $1125 and $1138. The support levels for Gold are $1110 and $1104. Remember that you can make profit by trading on the news. The decision for the federal interest rate will be announced today at 19:00 GMT. The current value is 0.5% which is the same as the forecast value. A higher than expected reading should be taken as positive/bullish for the USD while a lower than expected reading should be taken as negative/bearish for the USD. During the high market volatility, traders get opportunities for more profitable investments. Make sure your trading account is funded and you are ready for the Fed Interest Rate Decision. Stay up-to-date with all the key financial news around the world by liking us on Facebook, following us on Twitter and Instagram and subscribing to our YouTube channel. For more information please visit our web site www.hiwayfx.com Thank you and have a good trading day.

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