Daily Markets Broadcast 2019-02-27

Daily Markets Broadcast

2019-02-27

Wall Street softens with Fed in no rush
In his first day of testimony, Fed Chairman Powell highlighted “crosscurrents and conflicting signals” facing the US economy, hence the move to a more patient outlook. UK PM May promises a vote to delay Brexit if her deal fails. Trump and Kim to meet in Hanoi, Vietnam.
US30USD Daily Chart

Source: OANDA fxTrade

  • The US30 index snapped a two-day winning streak yesterday as investors struggled to find positives in Powell’s testimony. Very weak housing starts data added to the gloom
  • Resistance at the November high of 26,249 remains intact. Support may be found at the 200-day moving average at 25,090
  • US housing starts fell 11.2% m/m, weakest print since May last year. Today it’s the turn of pending home sales to see if a similar picture is unfolding in that part of the housing sector. Powell’s second day of testimony is also on tap. Trump is in the region, so his tweets may come at a more favourable time, for Asia.

DE30EUR Daily Chart

Source: OANDA fxTrade

  • The Germany30 index edged higher for a third straight day yesterday, reaching the highest since December 3, after German consumer confidence held steady in March
  • The 200-day moving average at 11,877 appears to be a tough hurdle to cross, especially since slow stochastics are in overbought territory and showing signs of turning bearish
  • Euro-zone confidence indicators for February feature on the data slate today. Let’s see if they can match the stable readings out of Germany yesterday.

UK100GBP Daily Chart

Source: OANDA fxTrade

  • UK shares fell yesterday, but the pound rose, after PM May promised a vote to delay Brexit if her proposed deal fails to get Parliament’s approval
  • The UK100 index fell for a second consecutive day, dropping to a two-week low. The 100-day moving average is at 6,981
  • UK shop prices rose by the most since January 2017 this month, jumping 0.7% y/y, according to British Retail Consortium data which was released earlier this morning.

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.