Daily Markets Broadcast 2020-02-27

Daily Markets Broadcast

2020-02-27

Wall Street drops further

US indices traded nervously yesterday, extending the recent decline as the number of new CoVid-19 cases outside China exceeded those within for the first time. Microsoft cut its sales forecasts for the current quarter while the Bank of Korea unexpectedly held rates at 1.25% this morning.

 

US30USD Daily Chart

Source: OANDA fxTrade

  • The US30 index has edged down to the lowest in four months in early trading this morning, extending the current decline to a sixth day
  • The index has opened below the 200-day moving average at 27,259 for the last two days. Losses from the mid-February peak are now at 9.9%. The 61.8% Fibonacci retracement of the August – February rally is at 26,771
  • Durable goods orders probably fell 1.5% in January after a 2.4% gain in December. US Q4 GDP is seen unchanged at +2.1% at today’s revision, according to the latest survey. Other data releases include pending home sales for January and the Kansas Fed manufacturing activity index for February.

 

DE30EUR Daily Chart

Source: OANDA fxTrade

  • The Germany30 index fell for a fifth consecutive day yesterday, touching the weakest level since October 11
  • The index is sitting near the 50% retracement of the rally from August to February at 12,546
  • A number of Euro-zone sentiment indices for February are due today, and are expected to show mixed results. Industrial and consumer confidence are seen unchanged, while the business climate is seen worsening and services sentiment is expected to improve, according to the latest surveys.

 

WTICOUSD Daily Chart

Source: OANDA fxTrade

  • West Texas Intermediate opened below the 50 mark for the first time in two weeks yesterday. It touched the weakest since early-January this morning
  • The 78.6% Fibonacci retracement of the December to April rally is at $47.40
  • Yesterday’s drop was mitigated somewhat by a smaller-than-expected build in weekly US crude oil inventories. Just 452,000 barrels were added instead of the more than two million barrels 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.