Daily Markets Broadcast 2018-11-26

Daily Markets Broadcast

2018-11-26

Wall Street slides again

Wall Street slid further in holiday-shortened trading on Friday amid more signs of a global economic slowdown. UK shares dropped ahead of the weekend Brexit summit while oil prices slid further toward $50 per barrel.

US30USD Daily Chart

Source: OANDA fxTrade

  • The US30 index fell for a second straight day during the US Thanksgiving period. First indications are that US futures may be attempting a bounce this morning
  • While the index fell, it still failed to move below the October low of 24,066. Daily momentum indicators may be starting to shift from a bearish standpoint
  • No first tier US data today. The Dallas Fed manufacturing index is expected to slip to 25.0 from 29.4 in November.

DE30EUR Monthly Chart

Source: OANDA fxTrade

  • The Germany30 index closed higher on Friday despite disappointing European PMI data. French, German and Euro-zone Markit manufacturing PMIs all came in below forecast, but managed to hold above the 50 mark
  • The index continues to pivot around the 55-month moving average at 11,219 after hitting a monthly low of 9.512 earlier this month
  • More economic disappointment is possible today as the German IFO expectations index is seen slipping to 99.2 in November from 99.8. This would be the third month of declines.

WTICOUSD Weekly Chart

Source: OANDA fxTrade

  • WTI slid to its lowest level in eleven months on Friday amid reports of higher production from Saudi Arabia this month
  • Friday’s fall meant that prices have fallen for seven straight weeks, with a total slump of 35% from October’s peak. Fibonacci support level at $49.39, 78.6% retracement of the June 2017 to October 2018 rally
  • Saudi Oil Minister said Saudi will respond to market demand for oil and will not flood oil market with supply. November output was 10.7M bpd.

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.