September 9, most European stock indexes show negative dynamics, against the background of weak data on German foreign trade, which cast doubt on the strength of the largest economy in the eurozone. At the same time, negative sentiments remain after the European Central Bank’s policy meeting, which was held yesterday.
On Thursday, ECB President Mario Draghi, speaking after the central bank announced that it had maintained its policy unchanged, said that the ECB intends to complete the asset repurchase program in March 2017. This disappointed investors who were waiting for immediate action, including a possible expansion or at least an extension of the asset repurchase program.
German exports fell sharply in July, losing -2.6% in July, while analysts predicted a 0.3% increase. German imports also declined, losing -0.7% in July, while analysts had forecast growth of 0.8%. At the same time, the balance of trade in Germany in July amounted to 19.4 billion, with expectations of 22.0 billion. FTSE 100 6.839.20 -19.50 -0.28%. DAX 10,632.77 -42.52 -0.40%. CAC 40 4,526.31 -15.89 -0.35%. FTSE MIB 17.322.01 -53.72 -0.31%. IBEX 35 9.080.40 -20.70 -0.23%. Stoxx 600 347.82 -1.50 -0.43%. In the market of the EURUSD currency pair during yesterday’s trading, the bulls were able to resume their movement to the top, after reporting that the policy of the European Central Bank remained unchanged. Today, even the negative statistics from Germany, did not unfold the movement of the pair. Now, we can expect the continuation of the bullish movement, to test the key resistance level of 1.1291. In the case, the breakdown of which, the bulls will be able to continue moving upwards, in the direction of the key resistance level of 1.1461. While the rebound, from the key resistance level of 1.1291, will demonstrate a lack of strength for the bulls to continue the movement and is likely to lead to a downward correction in the direction of the key support level of 1.1113.
Today, the GBPUSD currency pair quotes strengthened slightly after a two-day fall. At the same time, it is too early to talk about the likelihood of a reversal, and in the event of a resumption of the decline and breakdown of the low level of yesterday’s candlestick, we can expect a further decline, to test the key support level of 1.3222. Yesterday, after a rebound from a key support level, the USDCHF currency pair quotes resumed their growth. While there is no reason to talk about the likelihood of a reversal, and we can expect the continuation of the bullish movement to test the key resistance level of 0.9791.
Today, the EUR / JPY currency pair quotes continue to grow, breaking through and consolidating above 115.45. After that, the bulls can continue their way northward, in the direction of the key resistance level of 118.46. Alternative option. In case of resumption of the decline of the EUR / JPY pair and the return of quotes below the level of 115.45, we can expect a downward correction towards the key support level of 112.32.
Review prepared by Fort Financial Services analytical department. Follow our publications!