Daily Markets Broadcast 2019-01-17

Daily Markets Broadcast

2019-01-17

Wall Street lifted by strong bank earnings

The financial sector has kicked off the earnings reporting season, with encouraging results. PM May’s government survives the no-confidence vote. Rumours of a Brexit delay are circulating in the European press.

US30USD Daily Chart

Source: OANDA fxTrade

• The US30 index advanced to the highest level in a month yesterday as Bank of America and Goldman Sachs reported strong earnings
• The index is edging toward the 61.8% Fibonacci retracement of December’s drop at 24,308, while the 55-day moving average has edged lower to 24,382
• Fed’s Quarles is due to speak later today. The Fed’s Beige Book released yesterday showed modest to moderate economic growth in 8 out of the 12 Federal Reserve districts.

DE30EUR Daily Chart

Source: OANDA fxTrade

• The Germany30 index climbed for a second straight day yesterday, despite the UK’s Brexit issue remaining unresolved
• The 55-day moving average at 11,080 continues to cap prices near term, as it has since September 28
• German press reported that the EU may consider easing terms on the Ireland border, while the UK’s Financial Times said Germany and France could be amenable to talks about a Brexit delay until 2020.

WTICOUSD Daily Chart

Source: OANDA fxTrade

• Oil prices look set to snap a two-day advance as upward momentum appears to be waning after a 26% rally from December’s low
• The 55- day moving average at $52.47 is currently acting as a strong resistance point. It has capped prices since October 17
• Yesterday’s EIA inventory data showed another drawdown from stockpiles in the week to January 11, this time 2.68 million barrels. That’s the second consecutive weekly decrease and the most in six weeks.

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