Daily Markets Broadcast 2018-11-16

Daily Markets Broadcast

2018-11-16

Wall Street rebounds after early sell-off

Early trading was bearish on Wall Street as Brexit and UK politics clouded global sentiment. Sentiment shifted on the day after strong retail sales data and positive press reports on US-China trade talks. The US30 index posted its first up-day in five days. UK shares were surprisingly resilient given the political headlines.

US30USD Daily Chart

Source: OANDA fxTrade

  • The US30 index snapped a four-day losing streak after earlier touching the lowest level this month
  • The index failed to close below the 61.8% Fibonacci retracement support level of the Oct29 to Nov8 rally at 24,900, despite spiking lower. The index has since regained a foothold above the 200-day moving average at 25,094
  • October retail sales topped estimates, rising 0.8% m/m versus 0.5% expected. US industrial production is expected to rise 0.2% m/m in October, slower than September’s 0.3% gain.

DE30EUR Daily Chart

Source: OANDA fxTrade

  • The Germany30 index echoed the turnaround in sentiment on Wall Street, overcoming early Brexit-related pressure. Italy and EU still trading comments regarding the 2019 budget plan
  • The index hit a 2-1/2 week low before rebounding. The 55-day moving average at 11,843 would act as the first upward resistance point
  • Euro-zone October consumer prices are due today, and are expected to hold steady at +2.2% y/y.

UK100GBP Daily Chart

Source: OANDA fxTrade

  • The UK100 index rallied yesterday for the first time in six days, despite all the Brexit and UK political issues
  • The index is rising toward the 55-day moving average at 7,224. This average has capped prices on a closing basis since August 10
  • Growing risk that UK PM May could face a vote of no confidence. It would need 48 members to sign a protest letter in order to trigger the vote.

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.
Andrew Robinson

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