Daily Markets Broadcast 2020-02-21

Daily Markets Broadcast

2020-02-21

Wall Street falls despite strong US data

A rise in the number of new CoVid-19 cases outside of China saw US indices slide yesterday, despite data indicating the US economy is performing well.

 

US30USD Daily Chart

Source: OANDA fxTrade

  • The US30 index fell yesterday and looks to be extending those losses at this morning’s open. It could be a nervous session today.
  • The index fell to a 10-day low and could test the 55-day moving average at 28,795. The 100-day moving average is at 28,190
  • The Philadelphia Fed manufacturing survey posted the highest reading in 30 years in February, while the leading index was the highest since 2017, suggesting the US economy is doing well. Today’s data includes flash PMI readings from Markit for February and existing home sales for January.

 

DE30EUR Daily Chart

Source: OANDA fxTrade

  • The Germany30 index closed lower yesterday after touching the highest level on record since 2003
  • The index remains above the 55-day moving average at 13,379 while the 100-day average provides longer-term support below at 13,134
  • Germany’s flash PMI reading for February is expected to fall to 44.8 from 45.3 last month. That would be the weakest reading in three months.

 

WTICOUSD Daily Chart

Source: OANDA fxTrade

  • West Texas Intermediate (WTI) hit the highest since January 24 yesterday before retreating to finish flat on the day. Strong US data helped propel prices higher but a rise in the number of CoVid-19 cases outside China prompted the sell-off
  • The 100- and 200-day moving averages are at $56.30 and $56.355, respectively
  • Weekly crude oil inventories data from the Energy Information Authority showed a smaller-than-expected increase in stockpiles in the week to February 14. Just 400,000 barrels were added versus the 2.5 million analysts had expected.

 

 

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.