Daily Markets Broadcast 2019-09-18

Daily Markets Broadcast

2019-09-18

Wall Street steady on Saudi optimism

US indices recovered early losses to finish marginally higher yesterday. Saudi Arabia said it had recouped about 50% of lost production and expects to be back to pre-attack levels by the end of the month. That’s an earlier time-frame than many had feared. The Federal Reserve is expected to cut rates at today’s FOMC meeting.

 

US30USD Daily Chart

Source: OANDA fxTrade

  • The US30 index bounced off one-week lows to close slightly higher
  • The 55-day moving average has edged up to 26,606, with prices trading above it since September 5
  • The Federal Reserve is expected to trim its benchmark rate by 25 bps today. Market pricing is assigning a more than 80% probability of a cut, which is down from above 90% last week following the spike higher in oil prices on Monday.

 

DE30EUR Daily Chart

Source: OANDA fxTrade

  • The Germany30 index fell for a second day yesterday, dropping to a one-week low before a mild rebound
  • The 100-day moving average is at 12,114 and has supported prices since September 6. The 55-day moving average is just below at 12,083
  • Euro-zone consumer prices are seen rising 0.2% m/m in August following a 0.5% decline in July. ECB’s De Guindos is due to speak today.

 

WTICOUSD Daily Chart

Source: OANDA fxTrade

  • Crude oil prices gave back almost half of Monday’s gains yesterday after Saudi Arabia announced it expected to be fully back online by end-September
  • The 100-day moving average is at $56.95 today and could be the first technical support point
  • EIA crude oil inventory data as at September 13 are due to be published today. Expectations are for a drawdown of 2.9 million barrels after a 6.9 million barrels decrease the previous week.

 

 

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.