Daily Markets Broadcast 2019-10-17

Daily Markets Broadcast

2019-10-17

Wall Street slides after softer economic data

US indices were slightly lower at the close of business yesterday after US retail sales came in below forecast in September. A Brexit deal appears to be almost there with reports that Ireland’s DUP may be willing to accept the proposed deal. The two-day EU summit on Brexit starts today.

 

US30USD Daily Chart

Source: OANDA fxTrade

  • The US30 index has extended yesterday’s small losses in early trading this morning, setting up a second daily loss in a row
  • The index is back below the 78.6% Fibonacci retracement of the drop from September 12 to October 3 at 26,974. The 100-day moving average has risen to 26,529
  • US retail sales unexpectedly fell 0.3% m/m in September, the first contraction in five months. US housing starts are seen falling 8.6% in September after a 12.3% gain the previous month.

 

DE30EUR Daily Chart

Source: OANDA fxTrade

  • The Germany30 index climbed to the highest level since August 8 last year, advancing for a second day, amid heightened Brexit deal hopes. The deal could be agreed at the EU summit that runs from today to Friday
  • The next major resistance point could be the July 2018 high of 12,890. The 100-day moving average is at 12,155 today
  • The only major data point today is construction output for August for the Euro-zone, which is seen falling 0.8% m/m after a 0.73% contraction in July.

 

WTICOUSD Daily Chart

Source: OANDA fxTrade

  • Oil prices only registered a small gain yesterday to snap a two-day losing streak following a huge increase in inventories
  • West Texas Intermediate (WTI) is holding below the 55- and 100-day moving averages at $55.27 and $55.63 respectively
  • Weekly data from the American Petroleum Industries showed a surprising 10.5 million barrel increase in stockpiles in the week to October 11. That’s a sharp jump from last week’s 4.13 million barrel addition.

 

 

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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