Daily Markets Broadcast 2019-12-17

Daily Markets Broadcast

2019-12-17

Wall Street pushes higher

US indices reached new highs yesterday after provisional readings for business activity either matched or beat expectations, adding to the positive sentiment from the US-China Phase 1 trade deal.

 

US30USD Daily Chart

Source: OANDA fxTrade

  • The US30 index advanced for a fifth consecutive day yesterday, reaching record highs in the process. It’s opened slightly negative this morning after Boeing announced after hours it would suspend 737 MAX production in January
  • The 55-day moving average, which has supported prices since October 10, has risen to 27,388 while trendline support is around the 27,205 level
  • The flash Markit PMI for December was 52.5, matching forecasts, while the services PMI was 52.2, beating estimates of a 51.9 print. US industrial production is seen rebounding to +0.8% m/m in Nov from -0.8% in October.

 

DE30EUR Daily Chart

Source: OANDA fxTrade

  • The Germany30 index climbed for a fourth day yesterday but failed to get above the Friday high, which was the highest since January 2018. It’s started in the red this morning
  • The 55-day moving average has advanced to 12,928 and has also supported prices since October 10
  • Markit’s December flash PMI readings for both Germany and the Euro-zone disappointed with both failing to match expectations. There are no major data releases scheduled for today but we can expect a speech from ECB’s Lane.

 

WTICOUSD Daily Chart

Source: OANDA fxTrade

  • West Texas Intermediate (WTI) advanced for a third day yesterday amid hopes that the US-China trade truce might resurrect global activity and prompt future demand for oil
  • Prices hit the highest since September 17 on Friday and are currently holding below the 78.6% Fibonacci retracement of the September 16 – October 3 drop at $60.744
  • Weekly oil stockpiles data from the American Petroleum Institute (API) to December 13 are due today. Last week saw a surprise increase of 1.4 million barrels.

 

 

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.