Morning Call. Market Overview for 24.11.2016

The Big Picture

Yesterday saw the release of November´s Fed protocol. It contained a clear signal by the central bank that an interest rate increase will take place December. Most committee members argued that a hike would be justified in light of current economic conditions. Some warned of overheating of the job market. Previously turbulent market events, such as the Brexit, were taken as a reason not to adjust rates. The last Fed meeting took place prior to the US elections, instead of large losses expected by experts in light of a Trump win, the markets continually rose. This reason so not being valid to postpone action. The Fed desires credibility. US markets rose after the announcement, as the outcome was largely expected.

DAX

The DAX is in a sideways trend.  Resistance is at 10820, support at 10250.

Euro / USD

The Euro is in a downward trend.

USD / JPY

The USD is in an upward trend

Gold

Gold has broken support at 1200 and is in a downward trend

WTI Oil

WTI Oil is in an upward trend

Overnight:

We are currently in two-market world. US stocks climb from high to the next, whilst the DAX stagnates at best. After intermittent strong losses, the DAX closed down -0.48%. The weakest stock in the DAX was Continental, dropping 2.24%, Infineon on the other hand rose 2.41% after announcing good numbers. The USD continues to strengthen. In expectation of December´s Fed rate rise, the currency gained 0.7% against the Euro and 1.24% against the Yen. The yield differential speaks for further strength in the USD. Trade on Wall Street was quiet ahead of Thanksgiving. The Fed´s notes gave no surprises. The S&P gained 0.08%. The Nikkei 225 rises on Yen weakness, Gold and WTI Oil are unchanged.

Economic Data:

• 08:00 Germany: GDP Growth
• 10:00 Germany: IFO

Quarterly Results:

• US Bank holiday

RoboForex Analytical Department