Daily Markets Broadcast 2020-01-06

Daily Markets Broadcast

2020-01-06

Geopolitical concerns pressure equities

US indices tumbled Friday following the US airstrike that killed a top Iranian commander. Iran has since said it will no longer abide by the nuclear agreement signed with overseas powers and oil prices pushed higher on supply concerns. Japan markets re-open after an extended holiday.

 

US30USD Daily Chart

Source: OANDA fxTrade

  • The US30 index fell the most in a month on Friday as geopolitical concerns intensified
  • The 55-day moving average, which has supported prices since October 10, has moved up to 27,827
  • The final Markit services PMI for December is due today. The preliminary reading was 52.2, the highest since August.

 

DE30EUR Daily Chart

Source: OANDA fxTrade

  • The Germany30 index looks poised to fall for a second consecutive day today after falling the most in three months on Friday amid rising Middle East tensions
  • The index is testing the 55-day moving average at 13,108, which has supported prices since October 10
  • German retail sales probably increased 1.0% m/m in December, according to the latest survey of economists, suggesting the German consumer enjoyed a good Christmas.

 

WTICOUSD Daily Chart

Source: OANDA fxTrade

  • West Texas Intermediate (WTI) touched the highest since April 30 in early trading this morning as investors considered the prospect of supply disruptions should the Middle East tensions escalate
  • The 55-day moving average moved above the 200-day moving average at $57.79 on Friday, the first time since September 12
  • The weekly crude oil stockpiles data from the American Petroleum Institute as as at January 3 are due tomorrow. Last week saw a drawdown of 7.9 million barrels from reserves, the most since the week of August 27.

 

 

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.