Daily Markets Broadcast 2020-02-14

Daily Markets Broadcast

2020-02-14

Wall Street retreats as methodology shift boosts virus cases

US indices recovered some ground after an early sell-off yesterday, but still finished in the red, as China changed the methodology for reporting CoVid-19 cases which caused a spike in totals. More pressure came after the Fed announced it will scale back its liquidity injections, reducing the size of its overnight repo operations and using smaller term operations. UK’s Chancellor resigned which gave the pound a boost while oil prices continued the recent rebound.

 

US30USD Daily Chart

Source: OANDA fxTrade

  • The US30 index declined for the first time in four days, dropping 0.4% on the day after recouping some of the earlier losses
  • The 55-day moving average has risen to at 28,661 while the 100-day moving average is at 27,986
  • US retail sales probably rose 0.3% m/m in January, the same pace as December, according to the latest survey of economists.

 

DE30EUR Daily Chart

Source: OANDA fxTrade

  • The Germany30 index retreated from the record high since 2003 yesterday, declining for the first time in four days
  • The index remains above the 55-day moving average at 13,333 while the 100-day average provides longer-term support below at 13,061
  • The German economy probably expanded 0.1% q/q in Q4, the same pace as Q3, according to the latest survey of economists. The Euro-zone economy as a whole also likely grew 0.1% q/q.

 

WTICOUSD Daily Chart

Source: OANDA fxTrade

  • West Texas Intermediate touched the highest level in a week but eased back into the close yesterday.
  • Technical resistance on the upside could be found at the convergence of the 100- and 200-day moving averages at $56.35 and $56.53, respectively
  • Crude stockpiles data from the Energy Information Authority (EIA) to February 7 saw a jump in inventories by 7.46 million barrels, way more than the almost three million barrels analysts had expected. That’s acting as a drag, making the crude oil rebound very slow.

 

 

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.