Daily Markets Broadcast 2019-01-11

Daily Markets Broadcast

2019-01-11

Wall Street loves Powell

In a speech last night, Fed Chairman Powell reiterated that the central bank could afford to be patient and flexible and wait to see how global events impact the US economy before acting on interest rates. This fueled the fifth day of gains on Wall Street, though not all sectors advanced.

US30USD Daily Chart

Source: OANDA fxTrade

• The US30 index reached a three-week high yesterday following Powell’s comments, extending the current rally to a fifth day, the longest stretch since last month
• The index is edging toward the 61.8% Fibonacci retracement of December’s drop at 24,308. The 55-day moving average is at 24,429
• US consumer prices for December are due today and are seen falling 0.1% m/m, which would be the first decline in nine months.

DE30EUR Daily Chart

Source: OANDA fxTrade

• The Germany30 index rose for a third straight day yesterday, echoing the mood on Wall Street
• The 55-day moving average at 11,111 remains a significant hurdle for the index to overcome as slow stochastics momentum wanes
• ECB’s Villeroy said gradual normalization of ECB policy is still desirable, though the central bank should keep its options open in the face of uncertainty.

AU200AUD Daily Chart

Source: OANDA fxTrade

• The Australia200 index touched the highest level in nearly two months this morning after November retail sales came in above estimate
• The 100-day moving average is at 5,890 and the index has traded below it since October 5
• Retail sales rose 0.4% m/m in November, beating economists’ forecasts of a 0.3% gain. That’s the fastest growth in five months.

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