Daily Markets Broadcast 2019-04-04

Daily Markets Broadcast

2019-04-04

Wall Street higher on deal optimism

With US-China trade talks continuing in Washington the FT reported that a deal was “close” and Wall Street embraced it positively. However the details of the proposed deal suggest a slightly one-sided bias in the terms.

 

US30USD Daily Chart

Source: OANDA fxTrade

  • The US30 index edged higher this morning to near six-month highs in the follow-on from yesterday’s trade deal rumours
  • The next possible resistance point could be the October 2018 high of 26,940
  • Yesterday’s ADP employment change was soft, coming in a +129k jobs versus +170k expected. Is this a preview of what tomorrow’s payroll report will show? There are no major data releases today, but we have speeches from Fed’s Mester and Williams.

 

DE30EUR Daily Chart

Source: OANDA fxTrade

  • The Germany30 index extend its current rally to an eighth day yesterday amid a broader pickup in risk appetite. That’s the longest winning streak since July last year
  • The index touched the highest in almost six months yesterday and is rising toward the 61.8% Fibonacci retracement of last year’s May-December drop at 12,581
  • German factory orders are seen falling for a ninth straight month in February. Orders are expected to decline 5.4% y/y after a 3.9% drop in January.

 

CN50USD Daily Chart

Source: OANDA fxTrade

  • The China50 index continued to rally yesterday on trade talk optimism despite the prospect that the US is demanding unilateral enforcement conditions
  • The index rose to the highest in almost a year yesterday and has recouped about 70% of the 2018 losses. The 78.6% Fibonacci retracement of the January 2018 to January 2019 drop is at 13,908
  • The US is seeking terms in the trade deal that allow it to re-impose tariffs immediately if China does not comply, but China cannot do the same, nor can it take the US to the World Trade Organisation.

 

 

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.