Daily Markets Broadcast 2020-01-30

Daily Markets Broadcast

2020-01-30

Wall Street dips on neutral Fed

US indices pared early gains to close lower after the Fed held rates and signaled they would remain low for some time. The European Parliament approved Boris Johnson’s Brexit deal, clearing the way for the UK to leave the EU on January 31 with an agreement that will likely avoid a chaotic separation. The Bank of England is also expected to keep rates unchanged at today’s meeting.

 

US30USD Daily Chart

Source: OANDA fxTrade

  • The US30 gave back early gains and closed lower amid talk that airlines were seriously scaling back services to mainland China as the coronavirus situation worsens
  • The 55-day moving average at 28,417 remains intact and has supported prices since October 10
  • Chairman Powell said the Fed is not comfortable with inflation consistently running below its 2% target while asset valuations are elevated, but not extreme. US Q4 GDP growth is seen unchanged at +2.1% q/q annualized.

 

DE30EUR Daily Chart

Source: OANDA fxTrade

  • The Germany30 index was little changed at the close yesterday after attempting to push higher in early trading
  • The index is above the 55-day moving average at 13,283
  • Euro-zone confidence indicators are seen mixed this month, according to the latest surveys of economists. Industrial confidence is seen rising to -8.7 from -9.3 while services sentiment probably dipped to 11.2 from 11.4.

 

UK100GBP Daily Chart

Source: OANDA fxTrade

  • The UK100 index rose after the Brexit deal was ratified by the European Parliament, but gave back those gains into a weak close
  • The index is above the 100-day moving average at 7,376, which has supported prices since December 13
  • The Bank of England is expected to keep its benchmark interest rate unchanged at 0.75%, with no adjustment to its asset purchase facility either. Surveys suggest three of the committee members could vote for a cut. Market pricing assigns only a 45% chance of such an outcome.

 

 

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.