Daily Markets Broadcast 2018-11-12

Daily Markets Broadcast

2018-11-12

Wall Street down for a second day. Oil rebounds.

US markets extended the post-FOMC decline on Friday as US producer prices rose more than forecast in October, affirming the Fed’s hawkish stance on rates. At the weekend, OPEC ministers talked about a plan to reduce oil supplies going in to 2019, which has given crude oil a lift in early trading today.

US30USD Daily Chart

Source: OANDA fxTrade

  • The US30 index fell for a second day Friday, retreating further from four-week highs
  • The index tested the 55-day moving average at 25,886, but this average held on the day. Markets have opened slightly in the black this morning
  • It’s a US holiday today commemorating Veterans Day, so activity, volumes and liquidity may be less than normal.

DE30EUR Weekly Chart

Source: OANDA fxTrade

  • The Germany30 index recouped early losses to close in positive territory Friday. A more positive outlook for Brexit negotiations helped sentiment. Talk that UK PM May could hold Cabinet meeting today or tomorrow to approve Brexit deal after talks with Ministers yesterday
  • The index is still hovering above the 200-week moving average at 11,499
  • Italy Deputy PM Di Maio says confident of 2019 budget deficit/GDP ratio of 2.4%, based on growth and spending cuts. EU’s Dombrovskis says their budget based on overly optimistic assumptions.

WTICOUSD Daily Chart

Source: OANDA fxTrade

  • WTI could advance for the first time in eleven days after weekend OPEC developments
  • On Friday, WTI dropped below the $60 mark for the first time since February 14
  • The OPEC meeting at the weekend saw members and allies making plans to reduce production in 2019, in an attempt to halt sliding oil prices. Saudi Arabia to cut production by 500,000 barrels per day in December.

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Andrew Robinson

Andrew Robinson

Senior Market Analyst at MarketPulse
A seasoned professional with more than 30 years’ experience in foreign exchange, interest rates and commodities, Andrew Robinson is a senior market analyst with OANDA, responsible for providing timely and relevant market commentary and live market analysis throughout the Asia-Pacific region. Having previously worked in Europe, since moving to Singapore he worked with several leading institutions including Bloomberg, Saxo Capital Markets and Informa Global Markets, proving FX strategies based on a combination of technical and fundamental analysis as well as market flow information. Andrew began his career as an FX dealer with NatWest and the Royal Bank of Scotland in the UK.