Morning Call. Market Overview for 22.09.2016
22.09.2016
The Big Picture:
Janet Yellen has spoken and the Fed has decided. Rates were not raised. I n Janet Yellen´s following press conference the most „perfect“ financial scenario was described. On one hand the US economy is strong, on the other hand not strong enough for a rate increase. These were the words which investors wanted to hear and markets rose strongly. The decision by the open market committee to not raise rates, was not unilateral. This is unusual for the Fed, three members voted for a raise and 7 against. The fact that economic growth is supported by the consumer is of interest. Corporate investment is still too low, which spoils the picture.
DAX
The DAX is in an sideways trend. Resistance is at 10820, support at 10250
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 has reverted its trend and us trending upwards
Overnight:
The DAX was not able to maintain its strong gains of the morning and closed up 0.41%. Commerzbank was the day´s strongest performer, gaining 3.31%. After the Fed´s interest rate decision, the DAX gained firmly and rose by 100 points. US markets rose strongly, to the Fed not raising rates. The perspective of the times of monetary expansion not being over, gave investors hope. Microsoft rose 1.7% after announcing an increase in its quarterly dividend and a stock buyback program of 40 billion USD. Adobe gained 7.1% on the back of very good results. Asian markets traded firmer. The USD softened. WTI Oil gained 1.1% whilst Gold remained unchanged.
Economic Data:
- 14:30 USA: Initial Jobless Claims
- 16:00 USA: Existing Home Sales
USA Quarterly Results:
- No relevant data
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.