Daily Markets Broadcast 2019-06-24

Daily Markets Broadcast

2019-06-24

Wall Street consolidates near record highs

US indices gave back early gains to finish in the red on Friday as Middle east tensions caused a pause in the recent rally. Oil continues its move higher as more US sanctions against Iran are due to be imposed today.

US30USD Daily Chart

Source: OANDA fxTrade

• The US30 index snapped a four-day rising streak on Friday, but not before touching the highest since October 3
• The index stalled ahead of the 26,940 high struck back in October last year, but has started this week positively and could launch another test of that high this week
• The Chicago Fed activity index is expected to show a slight improvement to -0.37 in May from -0.45 the previous month, but would still be below zero for a fifth month in a row.

DE30EUR Daily Chart

Source: OANDA fxTrade

• The Germany30 fell on Friday despite better-than-expected flash PMI readings for the major European economies in June
• The May high of 12,452 is currently capping prices, while the 78.6% Fibonacci retracement of the May-December drop last year is at 12,581
• Germany’s IFO expectations index is seen slipping to 94.5 in June from 95.3 last month. The business climate index and current assessment index are both also expected to show a mild deterioration.

CN50USD Daily Chart

Source: OANDA fxTrade

• The China50 index brought a four-day raising streak to a halt on Friday, echoing the moves on Wall Street
• The index has stalled below the 78.6% Fibonacci retracement level of the April-May drop at 13,824. The 100-day moving average at 12,855 could act as support
• US White House Adviser Navarro has alleged that China is devaluing its currency to offset the US trade tariffs. NOTE: the offshore yuan rose 0.9% versus the US dollar last week.

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