Daily Markets Broadcast 2019-11-20

Daily Markets Broadcast

2019-11-20

US indices reverse early gains

Wall Street started positively but gave back those gains amid weakness across the retail sector. We had another heavy-handed tweet from US President Trump that China “must” do a trade deal, or suffer higher tariffs. The PBOC is widely expected to drop its Prime Lending Rate today.

 

US30USD Daily Chart

Source: OANDA fxTrade

  • The US30 index touched a new record high early yesterday but then posted the biggest one-day decline this month
  • The 55-day moving average has risen to 27,045 while trendline support could be found near the 27,250 level
  • Fed’s Williams (moderate, voter) and Rosengren (hawk, dissenter) both said economy is in a very good place. The minutes of the last FOMC meeting will be released late tonight (early Thursday, Singapore time).

 

DE30EUR Daily Chart

Source: OANDA fxTrade

  • The Germany30 index touched the highest since January yesterday but closed little changed as sentiment soured on Wall Street
  • The 55-day moving average has risen to 12,631. The 23.6% Fibonacci retracement of the rally from October 3 to November 12 is at 12,960
  • Germany’s producer prices probably fell 0.4% y/y in October, according to the latest survey of economists. ECB’s Lane is scheduled to speak late in the day.

 

WTICOUSD Daily Chart

Source: OANDA fxTrade

  • West Texas Intermediate fell the most since the end of September yesterday as weekly stockpiles data showed a large increase and rumours circulated that Russia is not keen on cutting its production
  • WTI has opened below the 55-day moving average at $55.76 today for the first time since November 1
  • Weekly inventory data from the American Petroleum Institute showed an increase of 5.95 million barrels in reserves, a sharp reversal from last week’s 500,000 barrel drawdown. Data from the Energy Information Administration are due today and are expected to show an increase of 1.06 million barrels following a 2.2 million barrel gain last 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.
Andrew Robinson

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