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Daily Markets Broadcast 2019-01-21

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Daily Markets Broadcast

2019-01-21

Wall Street advances to five-week high

Hopes for a solution to the US government shutdown and progress in the US-China trade negotiations helped US indices power to the highest levels since mid-December on Friday. China Q4 GDP data are on tap today, which could determine near-term direction, while GBP traders await PM May’s alternative Brexit proposals.

 

US30USD Daily Chart

Source: OANDA fxTrade

  • The US30 index climbed to the highest level since December 3, extending gains to a fourth week, as US President Trump prepared to announce a proposal to end the government shutdown. The proposal was immediately panned by both sides and branded a non-starter by House speaker Pelossi. US indices look to be edging lower in early trading today
  • The index is approaching the congestion area of the 61.8% Fibonacci retracement of the October-December drop at 24,932 and the 200-day moving average at 24,975
  • Today is a US bank holiday commemorating Martin Luther King’s birthday.

 

 

DE30EUR Daily Chart

Source: OANDA fxTrade

  • The Germany30 index posted the biggest one-day gain since January 4 on Friday, hitting the highest level since December 5
  • The 55-day moving average at 11,084 was breached for the first time since September 28. The 100-day moving average is at 11,506
  • German producer prices are expected to drop 0.1% m/m in December, the first monthly decline since February last year, potentially reducing pressure on the central bank to hike rates.

 

CN50USD Weekly Chart

Source: OANDA fxTrade

  • The China50 index closed at its highest level since December 14 on Friday, buoyed by Wall Street sentiment
  • The index nearly touched the 200-week moving average at 11,146 last Friday, but closed above the 100-day moving average at 11,069 for the first time since December 3
  • The Chinese economy is seen expanding 6.4% y/y in Q4, the slowest growth since Oanda records began in 2010. On Friday, 2017’s full-year growth was downgraded to 6.8% from 6.9%, which could help make the 2018 numbers look a bit better.

 

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.
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