Daily Markets Broadcast 2019-07-19

Daily Markets Broadcast

2019-07-19

Wall Street rebounds on heightened Fed hopes

Dovish comments from the Fed’s Williams helped US indices rebound from early losses, with solid economic data also helping. The US shot down an Iranian drone in the Straits of Hormuz while UK parliament voted for a Brexit amendment that would make it more difficult for the PM to force through a no-deal Brexit.

 

US30USD Daily Chart

Source: OANDA fxTrade

  • The US30 index rebounded from the week’s lows after Williams said the Fed should be aggressive when confronted with an adverse outlook. Speculation increased that a 50bps cut might be delivered at this month’s meeting
  • The 100-day moving average at 26,146 and the 55-day average at 26,211 continue to track each other higher
  • The Philadelphia Fed manufacturing survey surged this month, rising to 21.8, the highest in nine months. Today we see the Michigan consumer sentiment for July, which is seen improving to 98.5 from 98.2 in June.

 

DE30EUR Daily Chart

Source: OANDA FxTrade

  • The Germany30 index fell for a second straight day yesterday amid weak earnings reports
  • The index fell to the lowest in just over three weeks, testing the 55-day moving average support at 12,202
  • Germany’s producer prices are expected to fall 0.2% m/m in June, the latest survey of economists suggests. That would be the lowest reading in six months.

 

WTICOUSD Daily Chart

Source: OANDA fxTrade

  • Crude oil prices fell for a fifth consecutive day yesterday, despite an increase in Middle East tensions after the US reported it had shot down an Iranian drone
  • WTI is heading toward the 61.8% Fibonacci retracement of the June-July rally, which is at $54.48
  • The EIA is revising its 2019 global oil demand to 1.1 million barrels per day (bpd) from its 1.2 million forecast just last month, adding that it may cut it further if the global economy, and especially China, shows further weakness.

 

 

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.