Daily Markets Broadcast 2019-03-20

Daily Markets Broadcast

2019-03-20

Wall Street falters on talk of trade roadblocks

Wall Street indices were mostly lower yesterday though the NAS100 index eked out small gains. Talk that China was walking back some trade deal offers hit sentiment. Meanwhile, US negotiators are heading to Beijing next week. The Fed concludes its two-day policy meeting later today, with no change in rates or outlook expected.

US30USD Daily Chart

Source: OANDA fxTrade

  • The US30 index closed lower yesterday, snapping a two-day winning streak, after touching a two-week high
  • The 55-day moving average at 25,101 looks poised to cross above the 200-day moving average at 25,159 in the next day or so. It crossed above the 100-day moving average on March 13
  • The FOMC concludes its two-day meeting later today, with no change in rates or stance expected. It will also release new economic projections, which are expected to show some downgrades.

DE30EUR Daily Chart

Source: OANDA fxTrade

  • The Germany30 index rallied to the highest in five months yesterday, buoyed by an improvement in Germany’s ZEW survey in March
  • The index tested the 200-day moving average at 11,785 for the first time since August 1. Rising trendline support has shifted to near 11,450
  • The German ZEW economic sentiment survey for March improved to -3.6 from -13.4 with expectations for a -11.0 reading. That was the best reading in a year.

WTICOUSD Daily Chart

Source: OANDA fxTrade

  • WTI advanced for the sixth day in seven days yesterday, climbing to the highest since November 12 before retreating following the China trade negotiations news
  • The rally stalled just at the 50% retracement level of the October-December drop at $59.653
  • The EIA weekly report on crude stocks is expected to show a drawdown of 775,000 barrels in the week to March 15. That would be the second weekly reduction in a row following last week’s -3.86 million barrel hit.

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.