Daily Markets Broadcast 2020-01-30

Daily Markets Broadcast

2020-01-30

Wall Street dips on neutral Fed

US indices pared early gains to close lower after the Fed held rates and signaled they would remain low for some time. The European Parliament approved Boris Johnson’s Brexit deal, clearing the way for the UK to leave the EU on January 31 with an agreement that will likely avoid a chaotic separation. The Bank of England is also expected to keep rates unchanged at today’s meeting.

US30USD Daily Chart

Source: OANDA fxTrade

• The US30 gave back early gains and closed lower amid talk that airlines were seriously scaling back services to mainland China as the coronavirus situation worsens
• The 55-day moving average at 28,417 remains intact and has supported prices since October 10
• Chairman Powell said the Fed is not comfortable with inflation consistently running below its 2% target while asset valuations are elevated, but not extreme. US Q4 GDP growth is seen unchanged at +2.1% q/q annualized.

DE30EUR Daily Chart

Source: OANDA fxTrade

• The Germany30 index was little changed at the close yesterday after attempting to push higher in early trading
• The index is above the 55-day moving average at 13,283
• Euro-zone confidence indicators are seen mixed this month, according to the latest surveys of economists. Industrial confidence is seen rising to -8.7 from -9.3 while services sentiment probably dipped to 11.2 from 11.4.

UK100GBP Daily Chart

Source: OANDA fxTrade

• The UK100 index rose after the Brexit deal was ratified by the European Parliament, but gave back those gains into a weak close
• The index is above the 100-day moving average at 7,376, which has supported prices since December 13
• The Bank of England is expected to keep its benchmark interest rate unchanged at 0.75%, with no adjustment to its asset purchase facility either. Surveys suggest three of the committee members could vote for a cut. Market pricing assigns only a 45% chance of such an outcome.

Content 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 Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.