Daily Markets Broadcast 2019-06-12

Daily Markets Broadcast

2019-06-12

Wall Street closes lower on trade wait

US President Trump said yesterday he is causing a delay to the US-China trade agreement until China goes back to an earlier agreement. Inflation numbers out of China and the US will be the major events today.

 

US30USD Daily Chart

Source: OANDA fxTrade

  • The US30 index closed slightly lower yesterday, bringing a six-day rally to a halt. The index is little changed in early trading today
  • The index has tested the 78.6% Fibonacci retracement of the April-June drop at 26,226 but again failed to close above it. The 55-day moving average is at 25,970 today
  • US consumer prices are seen rising 1.9% y/y in May, the latest survey of economists shows, a slower pace than the 2.0% recorded in April. A lower reading could stoke ideas that the Fed may soon be switching to an easing bias.

 

DE30EUR Daily Chart

Source: OANDA fxTrade

  • The Germany30 index touched the highest in three weeks yesterday and extended the recent bull run to a third day. There has been little change since the open this morning
  • The index breached the 61.8% Fibonacci retracement of the May-June drop at 12,131 and now has eyes on the 78.6% retracement at 12,272. The 55-day moving average is at 12,017 and has supported prices on a closing basis since June 3
  • There are no major data releases for either Germany or the Euro-zone today but ECB speakers are out in force. Speeches from Draghi, De Guindos and Coeure are scheduled.

 

CN50USD Daily Chart

Source: OANDA fxTrade

  • The China50 index advanced for a third consecutive day yesterday but may struggle to extend those gains today following Trump’s overnight comments regarding a trade deal
  • The index is testing the 55-day moving average at 13,172, which has capped prices since May 7. The 100-day moving average, now at 12,697, has supported prices on a closing basis since January 23
  • CPI in May is expected to rise 2.7% y/y after a 2.5% increase in April, the latest survey of economists shows. Producer prices however are showing more benign tendencies, with a slowdown to +0.6% y/y expected from +0.9% in April.

 

 

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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.