Daily Markets Broadcast 2019-08-06

Daily Markets Broadcast

2019-08-06

Wall Street drops most this year

As the trade war intensifies, so Wall Street feels the pressure. Trump labeled China a currency manipulator after allowing the yuan to drop through 7 to the dollar.

US30USD Daily Chart

Source: OANDA fxTrade

  • The US30 index posted the biggest daily loss of the year yesterday on trade war escalation. The index has fallen further this morning, extending the current decline to a sixth consecutive day, the longest losing streak since December last year
  • The index closed below the 200-day moving average at 25,543 for the first time since June 4
  • It’s mostly second-tier data on the US calendar today, with June job openings and August’s IBD/TIPP economic optimism index on tap. A speech from the Fed’s Bullard may arouse more interest.

 

DE30EUR Daily Chart

Source: OANDA fxTrade

  • The Germany30 index fell for a third day yesterday and has continued those losses in early trading this morning. The index is now at its lowest level since March 29
  • The index closed below the 200-day moving average at 11,648 for the first time since April 1
  • German factory orders are expected to rebound in June, the latest survey of economists shows. Orders probably rose 0.5% m/m after suffering a 2.2% decline in May.

 

CN50USD Daily Chart

Source: OANDA fxTrade

  • The China50 index slumped to the lowest level in two months yesterday, pressured by the ongoing escalation in the trade spat between the US and China
  • The index appears to be heading toward the 200-day moving average at 12,307
  • In response to calls for the US Treasury to call China a currency manipulator, Peoples Bank of China Governor Yi Gang said the China will not have a competitive devaluation of its currency and that the current CNY level is appropriate.

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.
Andrew Robinson

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