Daily Review for May 06, 2021
Traders look ahead to the BoE’s interest rate decision.
Investors mark positions in assets in anticipation of the NFP data.
The S&P500 continues to recover additional points against Tuesday’s drop.
DAX30 regains the 15,000 zone.
Christine Lagarde to announce monetary policy measures.
VW to report financial results.
Crude oil seeks USD$70 per barrel. US weekly inventories decrease by 8 million barrels.
Scottish elections and BoE announcements, awake market GBPUSD interest.
| S&P500 +0.09% |
| Market and traders are aware of today’s interest rate decision by the Bank of England. Also, positions are starting to be placed in anticipation of the NFP. Mentioned macro-economic variables directly affect the S&P500, as many UK companies do business in the US. Also, the NFP as an employment indicator has a high correlation with the S&P500, as the index groups different economic sectors and an important sample of companies. |
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| Support 1: 4,158.96 Support 2: 4,154.30 Support 3: 4,151.72 Resistance 1: 4,166.20 Resistance 2: 4,168.78 Resistance 3: 4,173.44 Pivot Point: 4,161.54 |
| Sideway movement. Price is between support 1 and resistance 1. Trading range between 4,151 and 4,173. Pivot point at 4,161. RSI neutral. Traders are watching the 4,200 level. If the price reaches this target, the index could show important upward movement. |
| DAX 30 +0.10% |
| Important recovery of the German index during yesterday’s trading. At the close of the market it was up 2.12%. At the moment it is trading at 15,174. Today, we will have the Euro Zone retail sales data (demand indicator), where the market expects an increase of 1.5% on a monthly basis. We will also have announcements from Christine Lagarde, BoE interest rate decision and VW financial results. |
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| Support 1: 15,168.9 Support 2: 15,143.7 Support 3: 15,130.9 Resistance 1: 15,206.9 Resistance 2: 15,219.7 Resistance 3: 15,244.9 Pivot Point: 15,181.7 |
| Long-term trend line has been broken. Nevertheless, the price has recovered the 15,000 zone. Main support now is at the 100-day moving average at 14,300. Pivot point at 15,181. |
| CRUDE OIL +0.02% |
| Significant decrease in inventories in the US. According to the EIA, inventories fell by 8 million barrels, exceeding the expectations of a drop of 1.9 million barrels. The basis for inventory reduction is the actual increase in the utilization of the installed capacity of refineries in the USA. The price of crude oil is currently up 0.02% and is trading at USD$65.58 per barrel. |
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| Support 1: 65.46 Support 2: 65.31 Support 3: 65.13 Resistance 1: 65.79 Resistance 2: 65.97 Resistance 3: 66.12 Pivot Point: 65.64 |
| The price is getting closer to the 70 mark. It is looking to move up from the current level of 65. Expected trading range between 65.13 and 66.12. Pivot point at 65.64. Bulls target to consolidate the 70 level. Bears target 57. |
| GBPUSD +0.04% |
| Important day for the UK market. First of all, we have the BoE interest rate decision. Then we will have elections in Scotland. The BoE will announce economic measures to counteract the collateral effects of the pandemic. Meanwhile in Scotland, the SNP political party seeks to lead the independence referendum. At the moment the currency is up 0.04% and is trading at 1.3909. |
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| Support 1: 1.3898 Support 2: 1.3892 Support 3: 1.3885 Resistance 1: 1.3911 Resistance 2: 1.3918 Resistance 3: 1.3925 Pivot Point: 1.3905 |
| Sideway movement before market and political data. At the moment the price is between the 21 and 50-day moving averages. Trading range between 1.3885 and 1.3925. Pivot point at 1.3905. RSI neutral. |
| Sources |
| Reuters Market watch Bloomberg Capitalix Market Research |
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