Daily Markets Broadcast 2019-01-25

Daily Markets Broadcast

2019-01-25

Wall Street pressured as shutdown continues

The Senate blocked two rival proposals to end the US government shutdown yesterday, so things stay as they were. US officials said the US and China are “miles apart” from a trade deal, though some progress is being made on the easy, minor issues. Ireland’s DUP is said to privately support May’s Brexit Plan B, which could boost sentiment.

US30USD Daily Chart

Source: OANDA fxTrade

• The US30 index finished in the red yesterday after a day of volatile swings
• The index has held above the 55-day moving average at 24,293 for the past six days
• US Secretary of Commerce Wilbur Ross says experiencing a global slowdown. US and China are miles apart and progress would depend on China making further reforms.

DE30EUR Daily Chart

Source: OANDA fxTrade

• The Germany30 index looks set for the third consecutive daily gain amid hopes for progress in the Brexit situation
• Fibonacci support at 11,029, which is 23.6% retracement of the December-January rally, has held this week. The 100-day moving average is at 11,436
• ECB kept rates unchanged yesterday, as expected, and said economic outlook has moved to the downside. Germany’s Ministry of Economic Affairs cuts 2019 growth forecast to 1.0% from 1.8% due to global slowdown, Brexit.

UK100GBP Daily Chart

Source: OANDA fxTrade

• The UK100 index fell for the fourth straight day yesterday, but could stage a recovery today after news emerged that Ireland’s DUP could support May’s Plan B Brexit deal
• The index has traded below the 100-day moving average for almost five months. It is at 7,052 today
• on UK rates, BOE’s Haldane said yesterday “if the economy continues to tick along, as we expect, then we might expect some further limited and gradual rises.” However, the Bank would remain flexible to the economy’s performance.

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