Daily Markets Broadcast 2019-04-12

Daily Markets Broadcast

2019-04-12

Wall Street edges lower ahead of earnings season

US indices closed marginally lower yesterday on below-average volumes ahead of the Q1 reporting season, which kicks off today. UK PM Theresa May obtained a six month Brexit deadline extension. FOMC minutes showed most officials didn’t see the need for a rate hike this year.

 

US30USD Daily Chart

Source: OANDA fxTrade

  • The US30 index edged marginally lower yesterday, recording the fourth down day in five days, after touching a six month high on Friday
  • The index is falling toward the 55-day moving average at 25,697
  • The Michigan consumer sentiment index is expected to drift down to 98.0 in April from 98.4 in March, adding to the uncertainty surrounding the state of the US economy.

 

DE30EUR Daily Chart

Source: OANDA fxTrade

  • The Germany30 index rose for a second straight day yesterday as the Brexit deadline was pushed back to October
  • The index has held above the 23.6% Fibonacci retracement of the March 22 – April 4 rally at 11,856
  • Euro-zone industrial production data for February are expected to show a 0.6% contraction following a 1.4% increase in January.

 

UK100GBP Monthly Chart

Source: OANDA fxTrade

  • The UK100 index advanced for the first time in four days yesterday after the Brexit extension
  • The index looks on track for the fourth consecutive monthly gain now that the Brexit uncertainty has been pushed back temporarily. That would be the longest winning streak since the December 2017 – March 2017 run
  • The EU agreed that the UK would keep full membership rights during the extension period, which could end as soon as the Withdrawal Agreement was ratified by Parliament. UK could leave EU before June 30, and would not need to hold EU elections if a deal was reached by May 22.

 

 

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.