Daily Market Review 24/09/2015

The euro moved higher against the U.S. dollar on Wednesday, easing off a two-and-a-half week trough after European Central Bank President Mario Draghi said it was too early decide whether or not to add stimulus measures. Speaking from Brussels, Draghi said that “more time is needed to determine in particular whether the loss of growth momentum in emerging markets is of a temporary or permanent nature and to assess the driving forces behind the recent episodes of severe financial turbulence.” The comments dampened hopes that the ECB could implement additional stimulus measures to bolster growth in the euro zone.

EUR/USD eased off 1.1105, the pair’s lowest since September 4, to hit 1.1175 during U.S. morning trade, gaining 0.44%. The pair was likely to find support at 1.1086, the low of September 3 and resistance at 1.1209, Tuesday’s high.

Earlier Wednesday, research group Markit reported that Germany’s manufacturing purchasing managers’ index fell to 52.5 in September from 53.3 the previous month, while the services PMI ticked down to 54.3 from 54.9.

France’s manufacturing PMI ticked up to 50.4 this month from 48.3 in August, while the services PMI rose to 51.2 from 50.6.

For the entire euro zone, the composite PMI, which includes both manufacturing activity and services, slipped to 53.9 in September, Markit reported, from a reading of 54.3 in August.

Meanwhile, the dollar remained supported after comments by some Federal Reserve officials Monday night indicated that a U.S. rate hike is still on the cards this year.

Elsewhere, the U.S. dollar rose against its Canadian counterpart on Wednesday, after the release of tepid retail sales data from Canada and as expectations for a U.S. rate hike in the near future continued to support the greenback.

The pair was likely to find support at 1.3171, the low of September 21 and resistance at 1.3310, the high of September 11.

Statistics Canada reported that retail sales rose 0.5% in July, in line with expectations. Core retail sales, which exclude automobiles, were flat in July, compared to expectations for a 0.4% gain. Core retail sales increased by 0.5% in June, whose figure was revised from a previously estimated 0.8% advance.

U.S. crude oil inventories fell more-than-expected last month, official data showed on Wednesday. In a report, Energy Information Administration said that U.S. Crude Oil Inventories fell to a seasonally adjusted annual rate of -1.925M, from -2.104M in the preceding month.

Daily Technical Levels

Currency Strength & Weaknesses

Overall there is strength in the JPY and USD.
Overall there is weakness in the GBP, EUR and AUD.

Economic Calendar 24/09/15 GMT+2

VERY IMPORTANT: These are not specific trades. Do not blindly place trades in the directions given above. Use your own trading strategy and look at taking setups that occur in the same direction as my daily analysis.