Daily Markets Broadcast 2020-01-16

Daily Markets Broadcast

2010-01-16

Wall Street hits new highs as Phase One trade deal signed

After three years of sometimes acrimonious and bitter confrontation, US and China yesterday signed the first phase of what could be a broader trade deal.

 

US30USD Daily Chart

Source: OANDA fxTrade

  • The US30 index hit new highs yesterday after the trade deal was signed, closing above the 29,000 for the first time ever
  • The 55-day moving average, which has supported prices since October 10, has moved up to 28,127
  • US retail sales probably 0.3% m/m in December, a slight improvement from November’s +0.2%. The Philadelphia Fed manufacturing index for January is expected to jump to 3.9 from 0.3 last month. We can also expect a speech from Fed’s Bowman.

 

DE30EUR Daily Chart

Source: OANDA fxTrade

  • The Germany30 index slid for a second day yesterday after Euro-zone data disappointed
  • The index is still above the 55-day moving average at 13,210, which has supported prices on a closing basis since October 8
  • Euro-zone industrial production fell 1.5% y/y in November, worse than the -1.1% expected. Today we have the final German CPI numbers for December on tap. Prices are not expected to be adjusted from the initial +0.5% m/m estimate.

 

CN50USD Daily Chart

Source: OANDA fxTrade

  • The China50 index looks set to stem a two-day losing streak today after the phase one trade deal was finally signed off
  • The 55-day moving average has moved up to 14,090 and has supported prices since December 12
  • China’s new loans data for December may be released today. Forecasts suggest a 1.19 trillion yuan increase in loans, slightly less than the 1.39 trillion recorded in November.

 

 

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.