Morning Call. Market Overview for 21.09.2016
21.09.2016
The Big Picture:
Thanks to expansive monetary policy by the ECB, Bank of Japan, Bank of England, amongst others. Interest rates in industrial nations at at historic lows, reaching levels not seen in 5000 years. Alone the ECB buys 80 billion Euros worth of bonds per month. In 1998 LTCM, a fund run by Nobel Prize winning managers, came in to difficulties. The total amount in question was 5 billion USD. The then Fed Chair, Alan Greenspan, spoke of the financial system being at the edge of an abyss. Today the ECB buys 80 billion Euros of bonds a month. That is real inflation and a catastrophic situation for savers and investors. Momentarily 13 Trillion Euros worth of bonds are at negative interest rates. It remains interesting, as to how this situation will end.
DAX
The DAX is in an upward trend.
Euro / USD
The Euro is in a large sideways trend against the Dollar. Support is at 1.0822, resistance at 1.1429.
USD / JPY
The USD is in a downward trend against the Yen. Strong support is seen at a closing level of 100.
Gold
Gold is in a sideways trend. Strongest resistance is seen at 1375 USD and support at 1300 USD
WTI Oil
WTI Oil is in a downward trend. Strongest support is at 41.85 USD.
Overnight:
Prior to the Fed´s rate decision, German stocks ended the day up 0.19%. A typical trading day, prior to an important announcement. After initial strength, the DAX retraced lower. Trading in total was quiet. Deutsche Bank continued falling, landing just above its all-time low. US markets traded unchanged. The S&P gained 0.03% in quiet trade. Japan´s central Bank announced this morning, that their expansive monetary policy is set to continue. This led to a rise of 1% in the Nikkei 225. The USD rose 0.82% against the Yen. Gold loses 0.25% and WTI Oil rises 1.77%.
Economic Data:
- 13:00 USA: MBA Mortgage Applications
- 20:00 USA: Fed rate decision
Corporate Data:
- USA Quarterly Results: Bed Bath & Beyond Inc., amongst others
RoboForex Analytical Department
Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.