Daily market analysis by NordFX

[Julia NordFX]

GENERALIZED FOREX FORECAST FOR 12-16 JANUARY 2015​

Generalizing the opinions of 35 analysts from world leading banks and broker companies as well as forecasts based on most different methods of technical and graphical analysis, it becomes clear that there is no sufficient certainty about any of the pairs:
- for instance, almost a third of the analysts forecast growth for EUR/USD. The indicators show 50/50 chances for the upcoming days, though all of them predict a further fall for the pair later on. Thus, it is quite possible that at the start of the week EUR/USD will still rise to 1.9000, after which it will continue its main trend downwards – to 1.1750 and then further to 1.1650;
- the British Pound may copy the euro – first a rise followed by a drop. At the same time, some analysts believe that GBP/USD, being under bearish pressure, will still remain in the sideways trend;
- everyone expects USD/JPY to return to the range of 120.00-121.00 while the medium-term target is indicated as 121.75;
- the forecast for the USD/CHF pair remains the same as for the previous week – sideways movement along the level of 1.0000.

As for last week’s forecast, New Year’s surprises didn’t finish with the overnight gap of 1-2 January. The scenario was replayed 5 days later, pleasing the bears with another gap, and EUR/USD and GBP/USD continued their rapid fall. As a result, the euro went down to the low of summer 2010, and now the next target is the 10-year June mark.

The dollar got stronger against the yen as well. The USD/JPY pair could not reach 121.00 and rolled back down to the level of the middle of December 2014.

Finally, as predicted, USD/CHF got fixed above the key mark of 1.0000 and finished Friday at 1.0140.

Roman Butko, NordFX

 

[Julia NordFX]

The Week Ended on a Negative Note

Last Friday world financial markets closed with a slump of major stock indices. In Europe, in particular, due to weak statistics from Spain and Italy as well as reports of the ECB’s preparation of models of buying investment-grade assets, the British FTSE 100 fell 1.05 percent down to 6,501.14 points, the German DAX dropped 1.92 percent down to 9,648.50 points, and the French CAC 40 shed 1.9 percent closing at 4,179.07 points.

The Russian market ended up deep in the red – the MICEX index fell 2.1 percent down to 1,515.37 points, and the RTS index plunged 3.6 percent altogether reaching 782.62 points. This new drop was linked to oil prices bouncing around $50 a barrel again and Fitch’s downgrading of the issue ratings on Russia's senior unsecured foreign and local currency bonds to 'BBB-' from 'BBB'. The agency also gave a negative outlook for Russia’s ratings, which means that there might be a selloff of Russian securities by banks and investment funds that have no right to hold such countries’ securities in their portfolios.

In the USA, the Dow Jones shed 0.95 percent closing at 17,737.37 points, the S&P 500 fell 0.84 percent down to 2,044.81 points, and the NASDAQ lost 0.68 percent finishing the trading session at 4,704.07 points. Even positive US labor market data had no bearing on the trading results. US non-farm jobs increased by 252,000 in December 2014 whereas the forecast figure was 240,000. Unemployment reached 5.6%, the lowest rate since 2008. Such upbeat reports were dampened by the news of another petroleum company going bankrupt this year. According to media reports last Friday, WBH Energy, based in Texas, filed for bankruptcy. The decision was made as the company defaulted on its $50 million liabilities caused by falling oil prices. Last Tuesday, it was also reported that Laricina Energy, a Canadian oil producer, defaulted on its $150 million debt for the same reason – a sharp drop in oil prices globally.

At the same time, the NYMEX price of WTI oil futures for February went down by $0.43 and made $48.36 a barrel. The ICE price of February futures for oil of mark Brent was down by $0.85 reaching $50.11 a barrel. With that, February futures dropped under $50 a barrel three times in a week, getting to $48.90 a barrel.

On the Forex market, EUR/USD closed on a slight rise last Friday. The pair may start forming a new support level and closing last week’s gap.

Anna Gorenkova
NordFX Analyst

 

[Julia NordFX]

No Common Trend on Markets

Yesterday world financial markets closed mixed. In Europe, the British FTSE 100 grew 0.63 percent up to 6,542.20 points, the German DAX advanced 1.63 percent up to 9,941 points, and the French CAC 40 gained 1.47 percent making 4,290.28 points.

On the Russian equity market, the MICEX index grew 1.31 percent up to 1,533.09 points whereas the RTS index fell 2.48 percent down to 737.88 points.

In the USA, as corporate reports started to be released, the Dow Jones Industrial Average shed 0.15 percent closing at 17,613.68 points, the Standard & Poor's 500 dropped 0.26 percent down to 2,023.03 points, and the NASDAQ Composite fell 0.07 percent down to 4,661.50 points.

Yesterday US budget surplus data for December 2014 were also published. The budget deficit for the whole of 2014 turned out to be smallest since 2007.

The NYMEX price of WTI oil futures for February went down by $0.18 and reached $45.89 a barrel. The ICE price of February futures for oil of mark Brent dropped by $0.84 and got down to $46.59 a barrel.

On the Forex market, EUR/USD is holding near 1.18 for now. At this point, it’s early to speak about peak formation as the pair may start going down any moment.

Anna Gorenkova
NordFX Analyst

 

[Julia NordFX]

Oil Prices Went Up

Equity markets posted mixed trading results mid-week. As such in Europe, the British FTSE 100 dropped 2.35 percent down to 6,388.46 points, the German DAX fell 1.25 percent down to 9,817.08 points, and the French CAC 40 shed 1.56 percent reaching 4,223.24 points.

On Russia’s stock exchange, the MICEX index grew 1.39 percent up to 1,554.46 points, and the RTS index gained 0.7 percent going up to 743.06 points.

In the United States, after a release of corporate reports, the Dow Jones Industrial Average fell 1.06 percent closing at 17,427.09 points, the Standard & Poor's 500 dropped 0.58 percent down to 2,011.27 points, and the NASDAQ Composite shed 0.48 percent down to 4,639.32 points.

Oil prices rose noticeably in the second half of the trading session. On the NYMEX, the price of the WTI oil future went up by $2.59 and made $48.48 a barrel. On London’s ICE, the price of the Brent oil future was up by $4.50 reaching $48.69 a barrel.

On the Forex market, EUR/USD fell considerably. However, recently the pair has started to regain ground. There will hardly be another sharp upsurge, and what's happening now is a pullback from the low.

Anna Gorenkova
NordFX Analyst

 

[Julia NordFX]

GENERALIZED FOREX FORECAST FOR 19-23 JANUARY 2015​

After summing up the opinions of 35 analysts from world leading banks and broker companies and forecasts based on different methods of technical and graphical analysis, it’s become clear that many experts are at a loss, and the graphical analysis provides contradictory readings. However:
- EUR/USD is an exception. The overwhelming assessment of its future is that the pair will continue to fall to the level of 1.1400 and in case of breaking it even further to 1.1200. After that, EUR/USD may actually bounce up to 1.1785-1.800;
- despite bearish pressure, GBP/USD will stay in the sideways trend. The most probable fluctuation range is 1.5020-1.5250;
- USD/JPY is also in the sideways trend under bearish pressure. It’s predicted to go down to 115.20-116.00, with a possible rise just to 118.75. The graphical analysis shows that by the end of this week or next week the pair may return to an upward trend moving to the previous target of 121.75;
- it is difficult to make any forecast for USD/CHF at this time – the market is at a loss, although for the most part the pair is expected to go down.

As for last week’s forecast, the New Year's surprises were not limited to the two gaps of early January. Last Thursday the Bank of Switzerland played Santa Claus (albeit belatedly) and as a ‘gift’ suddenly removed the bottom trade boundary for USD/CHF. Even analysts from the largest banks did not expect this at all. As a result, all the predictions for USD/CHF made before 15 January become invalid.

This milestone event could not but affect other currencies. For example, the forecast for EUR/USD was that it would fall to 1.1650 by the end of the week. In fact, another 200 points have to be added to this, thanks to the Bank of Switzerland. As a result, on Friday the pair crashed below the level of 1.1460.

The GBP/USD pair, however, demonstrated impressive resistance to stress. We predicted a sideways trend for it, which was confirmed 100%. The pair finished trading at the same level as at the beginning of the week.

Roman Butko, NordFX

 

[Julia NordFX]

Boost for Markets as Oil Prices Rise

On the last day of the previous trading week, the world’s financial markets closed mainly on the up following rising oil prices. In Europe, the British FTSE 100 grew 0.79 percent up to 6,550.27 points, the German DAX advanced 1.35 percent up to 10,167.77 points, and the French CAC 40 added 1.31 percent making 4,379.62 points.

In Russia, the MICEX index grew 0.56 percent up to 1,563.21 points, and the RTS index shot up by 2.6 percent reaching 762.39 points. The Russian market got a boost from reports that Standard & Poor's postponed its decision about Russia’s investment-grade rating till the end of January. Initially the agency was going to downgrade Russia’s rating to junk as of last Friday.

Due to weak corporate data, US floors saw a drop in equity – the Dow Jones Industrial Average fell 0.39 percent down to 16,417.01 points, the Standard & Poor's 500 shed 0.14 percent down to 1,845.89 points whereas the NASDAQ Composite grew 0.09 percent closing at 4,218.69 points.

On the NYMEX, February futures for WTI oil rose by $2.44 making $48.69 a barrel. On London’s ICE, the February future for oil of mark Brent went up by $1.90 and reached $50.17 a barrel. That was the way markets reacted to the International Energy Agency’s forecast for oil production in non-OPEC countries. According to the IEA’s estimates, oil production will decrease by 350,000 barrels a day.

On the global currency market, EUR/USD kept falling last Friday. Today the pair may have a slight correction to 1.1720.

Anna Gorenkova
NordFX Analyst

 

[Julia NordFX]

EUR/USD at a Standstill

Yesterday world financial markets posted mixed results. European equity went up – the FTSE 100 grew 0.52 percent up to 6,620.10 points, the DAX 30 gained 0.14% going up to 10,257.13 points, and the САС 40 advanced 1.16 percent finishing the trading session at 4,446.02 points.

The Russian market wrapped up the day with a drop. As such, the MICEX index fell 0.34 percent down to 1,570.97 points, and the RTS index declined 1.34 percent reaching 756.27 points. Investors’ sentiments were influenced by falling oil prices and the IMF’s report. The IMF expects Russia’s GDP to decrease by 3% in 2015 whereas its earlier forecast was a 0.5% growth.

In the United States, the Dow Jones Industrial Average added 0.02 percent making 17,515.23 points, the Standard & Poor's 500 grew 0.16 percent up to 2,022.55 points, and the NASDAQ Composite gained 0.44 percent closing at 4,654.85 points.

The NYMEX price of WTI oil futures for February went down by $2.30 and got to $46.39 a barrel. On London’s ICE, the price of Brent oil futures for March dropped by $0.85 and reached $47.99 a barrel.

On the Forex market, EUR/USD isn’t making any headway for now. The pair’s upper correction boundary is 1.1720 but the downward trend remains.

Anna Gorenkova
NordFX Analyst

 

[Julia NordFX]

All Eyes on ECB

Mid-week the world’s financial markets closed on a positive note. In Europe, the British FTSE 100 advanced 1.63 percent up to 6,728.04 points, the German DAX grew 0.41 percent up to 10,299.23 points, and the French CAC 40 added 0.87 percent closing at 4,484.82 points. The market is waiting for the outcomes of the ECB meeting today. Players are confident that the ECB will announce the launch of its quantitative easing program for the eurozone. According to some media sources, the Central Bank is planning to buy bonds for 50 billion euro monthly till the end of 2016. The total purchasing pool will make 550 billion euro.

In Russia, market players also cheered up. As oil prices went up, the MICEX index grew 3 percent up to 1,618.17 points, and the RTS index advanced 3.42 percent up to 782.13 points.

In the USA, the Dow Jones Industrial Average gained 0.22 percent up to 17,554.28 points, the Standard & Poor's 500 grew 0.47 percent up to 2,032.12 points, and the NASDAQ Composite picked up 0.27 percent closing at 4,667.42 points.

The NYMEX price of February WTI oil futures rose by $1.31 and closed at $47.78 a barrel yesterday. On London’s ICE, Brent oil futures for March went up by $1.04 and reached $49.03 a barrel.

On the Forex market, EUR/USD is still within the same range as yesterday. However, the euro may drastically change its medium-term trend today if the ECB announces the start of the QE program.

Anna Gorenkova
NordFX Analyst

 

[Julia NordFX]

ECB Will Launch QE

Yesterday world financial markets closed on the rise due to the ECB’s decision to launch its quantitative easing (QE) scheme. According to the ECB, QE will begin this March and last all the way to September 2016 or till the inflation rate reaches 2% per annum. The daily bond-buying amount is set at 60 billion euro.

Thursday’s trading in Europe resulted in the FTSE 100 growing 1.02 percent up to 6,796.63 points, the DAX adding 1.32 percent up to 10,435.62 points and the CAC 40 advancing 1.52 percent up to 4,552.80 points.

In Russia, the MICEX index grew 2.99 percent making 1,666.56 points, the highest rate since 2011, while the RTS index shot up by 4.48 percent reaching 817.14 points. Besides an earlier rise in oil prices, the indices were boosted by President Vladimir Putin’s preliminary approval of the Russian government’s large-scale crisis management plan for 2015 to the tune of 1.375 trillion rubles.

In the USA, the Dow Jones Industrial Average grew 1.48 percent up to 17,813.98 points, the Standard & Poor's 500 gained 1.53 percent getting to 2,063.15 points, and the NASDAQ Composite advanced 1.78 percent closing at 4,750.40 points.

Oil prices finished with a drop after posting a rise earlier. The NYMEX price of WTI oil futures went down by $1.47 and closed at $46.31 a barrel. On London’s ICE, after testing the rate of $50 a barrel during the day, Brent oil futures for March ended the trading session with a $0.14 drop and reached $48.89 a barrel. Today oil prices are rising due to reports about the death of Saudi King Abdullah bin Abdul Aziz. He’s succeeded by his half-brother Salman bin Abdul Aziz Al Saud.

On the Forex market, EUR/USD went down more.

Anna Gorenkova
NordFX Analyst

 

[Julia NordFX]

Generalized Forex Forecast for 26-30 January 2015 ​

Generalizing in a table the opinions of 35 analysts from world leading banks and broker companies as well as forecasts based on different methods of technical and graphical analysis, the following can be expected:
- before returning to its main trend and continuing towards 1.1100, EUR/USD may go up to the level of 1.1380-1.1460;
- GBP/USD, also under bearish pressure overall, may at first rise to 1.5065 and then continue its fall to 1.4900;
- USD/JPY is expected to mirror the movements of its counterparts – after a fall it will rebound from 113.50 and rush up to its nearest target of 119.00;
- after surviving the recent shock, USD/CHF can be expected to continue its sideways trend with a rise to 0.8910-0.9000 and then a decrease to 0.8350.

As for the last week’s forecast:
- ECB President Mario Draghi met our expectations and helped our forecast for EUR/USD to fulfill to the tee. After his speech, the Euro swiftly broke through 1.1400 and, as was predicted, finished the week near 1.1200;
- following the Euro, GBP/USD succumbed to Mr. Draghi’s charms which resulted in the level of 1.5020, predicted to be the lower boundary, reversing direction and becoming the upper boundary of the corridor;
- the forecast for USD/JPY was confirmed 100% – the pair was in a sideways trend, then reached the predicted mark of 118.75 and returned to 117.70, the level of the beginning of the week;
- it turns out that no prediction can also be a prediction, which was backed up by the USD/CHF pair. Along with the analysts, we refused to make any suggestions regarding its fluctuations last week. Apparently, in sync with our doubts, the pair decided not to leave the rigid boundaries of its sideways trend throughout the whole week.

Roman Butko, NordFX

 

[Julia NordFX]

Dollar May Overtake Euro Soon

On the last day of the previous trading week the world’s financial markets closed mixed as is often the case. European indices closed with the biggest rise since 2011 in light of expectations for the QE launch. The British FTSE 100 grew 0.53 percent up to 6,832.83 points, the German DAX hiked up by 2.05 percent closing at 10,649.58 points, and the French CAC 40 advanced 1.93 percent up to 4,640.69 points.

In Russia, the MICEX index grew 0.3 percent up to 1,671.80 points, and the RTS index gained 0.5 percent going up to 820.99 points. S&P is expected to announce its decision about Russia’s sovereign rating this week.

In the United States, the Dow Jones Industrial Average shed 0.79 percent finishing the trading session at 17,672.60 points, the S&P 500 BMI fell 0.55 percent down to 2,051.82 points whereas the NASDAQ grew 0.16 percent up to 4,757.88 points.

On the NYMEX, the price of the March futures for WTI oil went down by $0.72 and made $45.59 a barrel. On London’s ICE, the price of March futures for oil of mark Brent rose by $0.27 and reached $48.97 a barrel.

On the Forex market, EUR/USD continues to go down. Players are getting rid of euros due to the unstable situation with Greece and its possible exit from the EU. Judging from the weekly and monthly charts (clearly showing a technical triangle pattern and a break downward), the euro may freely fall all the way down to 0.94.

Anna Gorenkova
NordFX Analyst

 

[Julia NordFX]

S&P Downgraded Russia’s Rating

Yesterday world financial markets closed mixed. In Europe, the British FTSE 100 grew 0.29 percent up to 6,852.40 points, the German DAX advanced 1.4 percent up to 10,798.33 points, and the French CAC 40 gained 0.74 percent up to 4,675.13 points.

In Russia, the MICEX index dropped 1.76 percent to 1,642.37 points, and the RTS index plunged all the 4.83 percent down to 781.31 points. Russian market players’ sentiments were impacted by falling oil prices. Besides that, Standard & Poor's Ratings Services downgraded Russia’s long- and medium-term foreign currency rating to junk with a negative outlook. Markets will be reacting to this event today as well.

In the USA, the Dow Jones Industrial Average added 0.04 percent closing at 17,678.70 points, the S&P 500 BMI grew 0.26 percent up to 2,057.09 points, and the NASDAQ gained 0.29 percent going up to 4,771.76 points.

The NYMEX price of WTI oil futures for March went down by $0.44 and made $45.15 a barrel. On London’s ICE, the price of Brent oil futures for March dropped by $0.63 and closed at $48.16 a barrel.

On the Forex market, EUR/USD started a correction after the previous sharp decline of the euro. The pair may go up all the way to 1.1550.

Anna Gorenkova
NordFX Analyst

 

[Julia NordFX]

Oil Prices Went Up

There was no common trend on the world’s trading floors on Tuesday. European indices closed with a drop – the FTSE 100 fell 0.6 percent down to 6,811.61 points, the DAX shed 1.57 percent down to 10,628.58 points, and the CAC 40 declined by 1.09 percent making 4,624.21 points.

There was an upbeat mood on the Russian market despite the fact that S&P had downgraded Russia’s credit rating. As such, the MICEX index grew 1.92 percent up to 1,673.92 points, and the RTS index added 0.28 percent reaching 783.53 points.

US indices went down due to weak corporate reports and mixed macroeconomic data. The Dow Jones Industrial Average fell 1.65 percent closing at 17,387.21 points, the S&P 500 BMI fell 1.34 percent down to 2,029.55 points, and the NASDAQ dropped 1.89 percent down to 4,681.50 points.

On the NYMEX, the cost of WTI oil futures for March rose by $1.08 and made $46.23 a barrel. On London’s ICE, the price of the Brent oil future for March delivery went up by $1.44 and reached $49.60 a barrel. The oil market got a boost after OPEC Secretary-General Abdullah al-Badri said that the price of oil could possibly hike up to $200 a barrel provided there are no investments in oil production for quite a while.

On the Forex market, EUR/USD carries on with its upward correction.

Anna Gorenkova
NordFX Analyst

 

[Julia NordFX]

Bearish Dominance on Markets

Mid-week the world’s financial markets closed mainly with a decline of major indices. Yesterday the US Federal Reserve decided to keep the key interest rate at 0-0.25%, which was expected by market players.

In Europe, the French CAC 40 fell 0.29 percent down to 4,610.94 points, the German DAX grew 0.78 percent up to 10,710.97 points, and the British FTSE 100 gained 0.21 percent reaching 6,825.94 points.

The Russian market declined on the heels of oil prices and a weakening ruble. The MICEX index fell 1.57 percent down to 1,647.71 points while the RTS index dropped 2.32 percent down to 765.37 points.

In the USA, the Dow Jones Industrial Average shed 1.13 percent going down to 17,191.37 points, the S&P BMI fell 1.35 percent to 2,002.16 points, and the NASDAQ was down by 0.93 percent getting to 4,637.99 points.

The NYMEX price of WTI oil futures for March went down by $1.78 and made $44.45 a barrel. On London’s ICE, the price of March Brent oil futures dropped by $1.13 and closed at $48.47 a barrel on Wednesday.

On the Forex market, the EUR/USD pair continues its correction.

Anna Gorenkova
NordFX Analyst

 

[Julia NordFX]

Mixed Trading Results

Yesterday world financial markets closed mixed. In Europe, the FTSE 100 fell 0.22 percent down to 6,810.60 points, the DAX grew 0.25 percent up to 10,737.87 points, and the CAC 40 advanced 0.44 percent up to 4,631.43 points.

On Russia’s equity market, the MICEX index shed 0.49 percent down to 1,639.65 points while the RTS index dropped 2.34 percent down to 747.45 points.

Yesterday US indices went up thanks to positive corporate date and solid jobs figures. According to reports, the number of first-time claims of unemployment benefits decreased by 43,000 and reached 265,000 whereas analysts had expected 300,000 claims. This is the lowest figure since 2000, which once again assured investors of the country’s economic recovery.

Trading resulted in the DJIA growing 1.28 percent up to 17,410.84 points, the S&P 500 BMI gaining 0.96 percent up to 2,021.29 points and the NASDAQ adding 0.98 percent and finishing the trading session at 4,683.41 points.

On the NYMEX, the price of March futures for WTI oil went up by $0.08 and made $44.53 a barrel. On London’s ICE, Brent oil futures for March rose by $0.66 and reached $49.13 a barrel.

On the Forex market, EUR/USD showed little change while continuing its correction. In the process,the euro may go up to 1.1550.

Anna Gorenkova
NordFX Analyst

 

[Julia NordFX]

Generalized Forex Forecast for 2-6 February 2015 ​

Generalizing in a table the opinions of 35 analysts from world leading banks and broker companies as well as forecasts based on different methods of technical and graphical analysis, the following can be expected:
- EUR/USD will continue its downward tendency to the 1.1100 mark, although the opinions of analysts were divided almost equally: a third predict growth for the pair, a third – its fall and a third – a sideways trend;

- the situation with GBP/USD is similar while bearish tendencies look more convincing in this case;

- there is no consensus about the USD/JPY pair this week either among analysts or among indicators, something that happens very rarely. Here the choice is between a sideways movement and the pair’s long-time tendency towards the range of 119.00-121.00, which it is very likely to reach after all;

- both analysts and indicators predict USD/CHF to return to the level of last autumn, with strong volatility too, intraday fluctuations reaching 150 and even 200 points.

As for the last week’s forecast:
- we predicted EUR/USD to fall to 1.1100 and possibly go up to 1.1380-1.1460. It did happen, just in the reverse order – first the pair slipped down to the 1.1094 mark, rebounded to 1.1420, then calmed down and entered a sideways trend with the upper boundary of 1.1380;

- as predicted for the start of the week, GBP/USD rebounded upwards and way more than expected. As a result, another attempt by the pair to fall to the low of 1.4900 failed and the pair was thrown off to the level of the beginning of the week – 1.4986;

- as anticipated, the USD/JPY pair tried to reach its nearest target of 119.00 but weakened at the level of 118.66, took a break and entered a sideways trend;

- USD/CHF was set on partially winning back its Black Thursday losses – it rushed upwards and quickly achieved the predicted level of 0.9000, stayed there for three days and then dashed even higher, soaring up by almost 300 points and reaching the 0.9285 mark by Friday.

Roman Butko, NordFX

 

[Julia NordFX]

Green Light for All Markets

Tuesday turned out to be a good day for all markets. As such, European equity closed on the rise due to the news from Greece. Greek Finance Minister Yanis Varoufakis suggested that rather than writing off Greece’s debt, it should be restructured into government bonds. Investors liked the idea. As a result, the British FTSE 100 grew 1.32 percent up to 6,871.80 points, the German DAX gained 0.58 percent up to 10,890.95 points, and the French CAC 40 added 1.09 percent finishing the trading session at 4,677.90 points.

In Russia, following a rise in oil prices, the MICEX index grew 1.79 percent up to 1,654.36 points, and the RTS index shot up by 5.48 percent making 786.69 points.

US equity was also up for the same reason – the Dow Jones advanced 1.76 percent up to 17,666.40 points, the S&P 500 BMI grew 1.44 percent up to 2,050.03 points, and the NASDAQ gained 1.09 percent reaching 4,727.74 points.

Strikes by US oil production workers and cost hikes by their companies drove oil prices up. The NYMEX price of WTI oil futures for March went up by $3.48 and made $53.09 a barrel. On London’s ICE, the price of Brent oil futures for March delivery rose by $3.16 and reached $57.91 a barrel.

Yesterday on the Forex market, the euro went up against the dollar in light of reports from Greece. The EUR/USD pair may yet test the level of 1.1450.

Anna Gorenkova

NordFX Analyst

 

[Julia NordFX]

European News Threw Markets into Confusion

On Wednesday, the world’s financial markets closed mixed due to ambivalent news from the European Union. In Europe, the British FTSE 100 fell 0.17 percent down to 6,860.02 points, the German DAX grew 0.19 percent up to 10,911.32 points, and the French CAC 40 gained 0.39 percent up to 4,696.30 points.

Yesterday the eurozone PMI report for January 2015 was released. According to it, the index went up to 52.6 points while the in December 2014 the value was 51.4 points. The figure above 50 points indicates greater economic activity and growth in the region.

At the same time, the ECB decided to revoke the waiver that had allowed Greek banks to use government bonds as collateral for ECB loans. Now Greek banks would have to apply for ECB emergency liquidity assistance whereas earlier they could receive central bank loans in the regular manner.

As oil prices dropped, so did the RTS index on the Russian equity market. It reached 770.63 points, which is 2.04 percent lower than the previous closing rate. However, the MICEX index grew, albeit slightly – just 0.1 percent up to 1,656.02 points.

In the USA, the Dow Jones grew 0.04 percent up to 17,673.02 points but the S&P 500 BMI dropped 0.42 percent down to 2,041.51 points, and the NASDAQ fell 0.23 percent down to 4,716.70 points.

On the NYMEX, the price of WTI oil futures for March went down by $4.60 and reached $48.45 a barrel. On London’s ICE, the price of Brent oil futures for March dropped by $3.75 and ended up at $54.16 a barrel. This was the market’s reaction to the data on US oil reserves that had increased again and reached an 80-year high. Besides that, the USA didn’t cut back its oil production. Investors were once again reminded of oversupply on the oil market.

The Forex market saw the euro get weaker against the dollar. Nonetheless, EUR/USD is still holding within the 1.1550-1.1097 range.

Anna Gorenkova

NordFX Analyst

 

[Julia NordFX]

Upbeat Mood on Oil Market

Yesterday world financial markets closed mainly on the up following rising oil prices. In Europe, the FTSE 100 grew 0.09 percent up to 6,865.93 points, the DAX shed 0.05 percent down to 10,905.41 points while the САС 40 added 0.15 percent reaching 4,703.30 points.

In Russia, the MICEX index advanced 2.42 percent up to 1,696.06 points, and the RTS index shot up by 4.4 percent making 804.50 points.

In the United States, the Dow Jones grew 1.16 percent up to 17,878.84 points, the S&P 500 BMI gained 1.02 percent up to 2,062.30 points, and the NASDAQ added 1.03 percent getting to 4,765.10 points.

There were some serious factors that led to a rise in prices. Yesterday militants captured an oil field in Libya. Besides that, the People’s Bank of China cut the mandatory reserve ratio for banks by 0.5% in a bid to stimulate economic activity. Thus, the NYMEX cost of WTI oil futures for March went up by $2.03 and made $50.48 a barrel. On London’s ICE, the price of Brent oil futures for March delivery rose by $2.41 and reached $56.57 a barrel.

On the Forex market, EUR/USD is holding within the same range (1.1550-1.1097) so far.

Anna Gorenkova
NordFX Analyst

 

[Julia NordFX]

Varied Market Trends Continued

Last Friday world financial markets closed in the red. The exception was the Russian market where equity went up on the heels of rising oil prices.

In Europe, due to weak reports from Germany, the British FTSE 100 fell 0.18 percent to 6,853.44 points, the French CAC 40 dropped 0.26 percent down to 4,691.03 points, and the German DAX shed 0.54 percent getting to 10,846.39 points. According to the released data, Germany’s industrial production growth turned out to be smaller – 0.1% instead of 0.4% as analysts expected. Besides that, Siemens announced that it would cut almost 8,000 jobs (2% of the total company employees). Moreover, the S&P rating agency downgraded Greece’s long-term credit rating from B to B-.

On Russia’s floors, the MICEX index advanced 3.5 percent up to 1,755.45 points, and the RTS index grew 2.72 percent up to 826.40 points.

In the USA, the Dow Jones fell 0.34 percent down to 17,824.29 points, the S&P 500 BMI also shed 0.34 percent down to 2,055.47 points, and the NASDAQ dropped 0.43 percent down to 4,744.40 points.

The NYMEX price of WTI oil futures for March went up by $1.32 and made $51.80 a barrel. On London’s ICE, the price of March futures for oil of mark Brent rose by $1.58 and reached $58.15 a barrel.

On the Forex market, EUR/USD is staying within the same range for now.

Anna Gorenkova

NordFX Analyst