Daily Markets Broadcast 2018-11-01

Daily Markets Broadcast


Wall Street extended gains into month-end

Wall Street rallied for a second day amid position adjustments into month-end. However, the US30 index still faced its biggest monthly loss in a decade. UK shares may get a boost from press reports that the UK has struck a deal for financial services post-Brexit.

US30USD Daily Chart

Source: OANDA fxTrade

  • The US30 index rose for a second day but still recorded its biggest monthly loss since 2008, as October came to a close.
  • The index is straddling the 200-day moving average at 25,087. It’s traded below the 100-day moving average (at 25,456 today) for the last three weeks
  • ISM PMIs for October are due today. Manufacturing index expected to dip to 59.0 from 59.8. Given that China’s PMIs were soft as a result of the tariff wars, a lower reading could be possible.

DE30EUR Daily Chart

Source: OANDA fxTrade

  • The Germany30 index rose for a third day, trimming the monthly loss to 6.4% from more than 9.5% at one stage.
  • Support at the 55-month moving average at 11,188 held on the month. 38.2% Fibonacci retracement of the Sep27 to Oct 26 drop is at 11,586
  • Consumer prices rose a more-than-expected 1.1% y/y in October, data released yesterday showed. There are no data releases scheduled for today.

UK100GBP Daily Chart

Source: OANDA fxTrade

  • The UK100 index rose to its highest in three weeks on the last trading day of October, but was still down 5.2% on the month
  • The 55-month moving average is at 7,308 and has capped the index on a closing basis since August 10
  • Shares could push higher today, led by the financial sector, on UK press reports that PM May had reached a deal with the EU granting financial services companies access to Europe post-Brexit

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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.
Andrew Robinson

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