Daily Markets Broadcast 2020-02-10

Daily Markets Broadcast

2020-02-10

Wall Street retreats despite strong jobs data

The virus effect appears to be exerting a stronger influence on equity indices than a stellar jobs report, as reported deaths from the virus top SARS totals.

 

US30USD Daily Chart

Source: OANDA fxTrade

  • The US30 index snapped a four-day winning streak despite reports showing a healthy labour market
  • The 55-day moving average has risen to at 28,555 while the 100-day moving average is at 27,884
  • The US economy added 225,000 jobs in January, beating estimates of just 160,000. The unemployment rate edged up to 3.6% from 3.5%, partly due to a higher participation rate. There are no major US data releases scheduled for today but Fed’s Bowman is due to speak.

 

DE30EUR Daily Chart

Source: OANDA fxTrade

  • The Germany30 index looks set to decline for a second consecutive day today as the corona virus impacts risk appetite
  • The index is above the 55-day moving average at 13,293 while the 100-day provides longer-term support below at 13,010
  • Euro-zone Sentix investor confidence probably dipped to 4.0 this month from 7.6 in January, according to the latest survey of economists, mostly due to the virus effect.

 

WTICOUSD Monthly Chart

Source: OANDA fxTrade

  • The attempted rebound in oil markets last week appears to be short-lived with prices looking poised to slide for a third straight day
  • Oil prices opened below the 55-month moving average this month for the first time in a year. That moving average is at $53.12 today. The 100-month moving average has crossed below the 200-month moving average
  • Tomorrow sees the release of weekly crude oil stockpiles data from the American Petroleum Institute (API). Last week saw an addition to inventories of 4.2 million barrels.

 

 

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.