Daily Markets Broadcast 2020-01-29

Daily Markets Broadcast

2020-01-29

Wall Street takes the virus in its stride

US indices rebounded from the worst losses of the year yesterday, helped along by strong economic data. It was a broader risk-on day, with safe havens slipping and oil prices rising. The Federal Reserve holds its first FOMC meeting of 2020 later today.

 

US30USD Daily Chart

Source: OANDA fxTrade

  • The US30 index halted a two-day slide yesterday, shrugging off the worsening news on the virus and boosted by the strongest Richmond Fed manufacturing index in 16 months
  • The 55-day moving average at 28,397 remains intact and has supported prices since October 10
  • The FOMC is expected to report an unchanged policy at today’s meeting, focusing on the data flow going forward. Pending home sales are seen rising 0.5% m/m in December, a slower pace than November’s +1.2%.

 

DE30EUR Daily Chart

Source: OANDA fxTrade

  • The Germany30 index rebounded from three-week lows to finish higher yesterday, echoing the positive mood on Wall Street
  • The index has regained the 55-day moving average at 13,282 after opening below it for the first time since October 9
  • German Gfk consumer confidence readings for February are seen unchanged at 9.6. Import prices probably rose 0.3% m/m in December, according to the latest survey of economists.

 

XAU/USD Daily Chart

Source: OANDA fxTrade

  • Gold prices slid for the first time in five days yesterday as the market coped with the worsening Wuhan virus crisis
  • The 55-day moving average is at 1,505.42 and has supported prices since December 23
  • The latest coronavirus update out of China shows 5,974 confirmed cases, up from 4,515 yesterday, with the death toll rising to 132.

 

 

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.