Daily Markets Broadcast 2019-09-20

Daily Markets Broadcast

2019-09-20

Wall Street slides as trade talks resume

US indices closed slightly lower after a volatile session yesterday as the US and China sat down for the first face-to-face trade talks in two months. EU’s Juncker said that he was prepared to remove the so-called backstop from a withdrawal agreement, so long as all of the EU’s objectives are met.

 

US30USD Daily Chart

Source: OANDA fxTrade

  • The US30 index edged lower for the first time in three days yesterday
  • The 55-day moving average has edged up to 26,613, with prices trading above it since September 5
  • A Trump adviser said the President is prepared to increase pressure on China if trade deal is not agreed to soon. It’s a slow finish to the week on the data front, with the only item on the calendar a speech from Fed’s Rosengren.

 

DE30EUR Daily Chart

Source: OASNDA fxTrade

  • The Germany30 index has started positively this morning, possibly setting up a third consecutive daily gain
  • The 100-day moving average is at 12,115 and has supported prices since September 6. The 55-day moving average is just below at 12,078
  • The provisional reading for the Euro-zone’s consumer confidence is expected to slip to 7.0 in September from 7.1 last month, according to the latest survey of economists.

 

UK100GBP Daily Chart

Source: OANDA fxTrade

  • The UK100 index saw wild swings yesterday before closing little changed amid rising hopes for progress toward a Brexit deal
  • The index has so far failed to overcome resistance at the convergence of the 100- and 55-day moving averages at 7,345.2 and 7,348.7 respectively. The 55-day moving average has capped prices on a closing basis since August 1
  • The Bank of England held rates at yesterday’s meeting, as expected. The Bank releases its Quarterly Bulletin today. Progress toward a Brexit deal seems possible after Juncker’s comments on the back-stop situation, which could help sentiment.

 

 

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.