Daily Markets Broadcast 2019-05-09

Daily Markets Broadcast

2019-05-09

Wall Street steadies with trade tariff threat finely balanced

US indices steadied at lower levels yesterday as Friday’s tariff threat deadline nears. China has threatened retaliation if the tariffs go ahead but at least they are still at the negotiating table. Crude oil held above $60 per barrel.

 

US30USD Daily Chart

Source: OANDA fxTrade

  • The US30 index clawed back early losses to snap a two-day losing streak yesterday after posting the biggest one-day loss in four months on Tuesday
  • The index is hovering below the 55-day moving average at 26,055 with the 200-day moving average at 25,400
  • The US trade deficit is expected to widen to $50.2 billion in March from $49.4 billion in February. Fed’s Powell is scheduled to speak at 12:30GMT.

 

DE30EUR Daily Chart

Source: OANDA fxTrade

  • The Germany30 index snapped a two-day losing streak after industrial production data out of Germany beat estimates and echoed the positive shift in factory orders
  • The index is still holding above the 23.6% Fibonacci retracement of the rally since December at 11,938
  • There are no major German or Euro-zone economic releases scheduled for today. ECB’s Draghi said he will not accept defeat regarding the inflation target, nor will he change it.

 

WTICOUSD Daily Chart

Source: OANDA fxTrade

  • WTI rose yesterday as weekly official US inventory data showed a surprise drop. The rally has been tempered today somewhat after Saudi Arabia announced it would fill all the orders for June that it has, including from those countries that used to buy from Iran
  • Oil held above the 200-day moving average at 60.55, as it has on a closing basis since April 1. The 55-day moving average looks poised to cross above the 200-day moving average this week
  • EIA crude stocks fell by 3.96 million barrels in the week to May 3, data released yesterday showed.

 

 

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.