The Syrian Factor Remains Dominating in the Market

We stepped in cold market waters of September only with one foot, but news lines are already glistening with various headings.

Limiting factor for the world markets is quite intense international situation around Syria. As it became known, the U.S. President Barack Obama got support of a number of key figures in the American congress in a question of drawing military blow to Syria. Vote on the matter in the congress will take place next week.

In addition to this on Tuesday in the first part of the day there were messages on start of ballistic missiles in the Mediterranean Sea. These news in the moment provoked speculative growth in the oil market, even in spite of the fact that as a result the Pentagon declared that rocket tests aren't connected with possible operation in Syria as they were already planned long ago (together with Israel).

As a result, price for Brent in a momentum reached 115.68$ per barrel and price for Light was on a level of 108.54$ per barrel. This morning, we can see Brent traded on a price of 113.78$ per barrel and Light on a level of 107.54$ per barrel, just with a slight decrease.

On the same background, EUR/USD pair became also the victim of market fears, which supported sales. The release of data on business activity in manufacturing industry of the USA became an additional factor of pressure. So, currency pair from level of opening 1,3188 dropped to a minimum of 1,3143 and finished trading days closely to  1,3165.

The Eurozone will publish today a series of data on business activity in a services sector. The indicator can continue to show growth, maintaining hopes of investors of more aggressive speech of the head of European Central Bank during a press conference after meeting. In that case it is possible to wait for kickback of EUR/USD from 1,3150 with probability of breakdown 1,32 and the further purpose on 1,3230.


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