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.

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