Daily Markets Broadcast 2019-02-07

Daily Markets Broadcast

2019-02-07

Wall Street consolidates recent gains

There wasn’t much data/news to impact markets yesterday, with President Trump’s State of the Union address having little for the markets to latch on to. Most of Asia is still celebrating the Lunar New year, so activity may be light.

 

US30USD Daily Chart

Source: OANDA fxTrade

  • The US30 index touched its highest in two months yesterday, but pared gains to close slightly in the red
  • The index faces resistance at the 25,768 level, which is 78.6% Fibonacci retracement of the October-December drop
  • US President Trump confirmed his negotiating team is heading to Beijing next week to continue trade talks. Meanwhile the US trade deficit narrowed to the least in five months in November.

 

DE30EUR Daily Chart

Source: OANDA fxTrade

  • The Germany30 index snapped a two-day winning streak yesterday after German factory orders continued the recent spate of weaker European data
  • The index appears to be capped near-term by the 100-day moving average at 11,360
  • Having seen the weak factory orders data, today it’s the turn of German industrial output, which could surprise to the downside and add more pressure to the index.

 

WTICOUSD Daily Chart

Source: OANDA fxTrade

  • West Texas Intermediate rebounded from the week’s lows after the latest inventory data from EIA
  • WTI’s two-month rally appears to have stalled, at least temporarily, at the 38.2% Fibonacci retracement level of the October-December drop at $55.54
  • EIA data showed an increase in inventories of 1.26 million barrels in the week to February 1, the third weekly gain in a row.

 

 

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.