Daily Markets Broadcast 2020-03-03

Daily Markets Broadcast

2020-03-03

Wall Street surges on central bank assurances

US indices rallied strongly as central banks from the US to Japan promised to take action to support local economies hit by the CoVid-19 outbreak. That said, the Reserve Bank of Australia is expected to keep rates unchanged at today’s policy meeting.

 

US30USD Daily Chart

Source: OASNDA fxTrade

  • The US30 index jumped the most since December 2018 yesterday and looks set to extend the current rally into a third day today
  • The 200-day moving average is at 27,299 while the 50% retracement of the February 12-28 drop is at 27,143
  • The ISM-NY business conditions index is expected to slump to 24.1 in February from 45.8 the previous month, latest surveys show. The IBD/TIPP economic optimism reading for March is expected to fall to 58.1 from 59.8. Fed’s Mester and Evans are scheduled to speak.

 

DE30EUR Daily Chart

Source: OANDA fxTrade

  • The Germany30 index rallied for the first time in eight days yesterday amid a market reversal on the back of central bank assurances
  • The index is rising toward the 200-day moving average, which is at 12,636 today
  • The final Markit manufacturing PMI readings for Germany and the Euro-zone for February were revised higher from preliminary readings and, surprisingly, improved on January’s readings. Today we see Euro-zone flash CPI estimates for February and the unemployment rate for January. ECB’s De Guindos is due to speak.

WTICOUSD Daily Chart

Source: OANDA fxTrade

  • Oil prices rebounded yesterday for the first time in eight days amid a shift in risk appetite and heightened prospects that OPEC and its allies will trim production at a meeting later this week
  • West Texas Intermediate (WTI) is higher for a second consecutive day and has climbed above the 38.2% Fibonacci retracement of the February 20 to March 2 drop at $47.66. The 50% retracement is at $48.95
  • The American Petroleum Institute (API) will release weekly crude oil stockpiles data to February 28 today. Last week saw an increase in inventories of 1.3 million barrels, the fourth increase in a row.

 

 

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.