Daily Markets Broadcast 2019-12-18

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Daily Markets Broadcast

2019-12-18

Equities advance on positive US data

US indices remained close to record highs yesterday as US economic data came in better than forecast. The pound fell on renewed Brexit jitters while WTI topped $61 for the first time in three months.

 

US30USD Daily Chart

Source: OANDA fxTrade

  • The US30 index looks set to climb for a seventh straight day today, the longest winning streak since September
  • The 55-day moving average, which has supported prices since October 10, has risen to 27,430 while trendline support is around the 27,200 level
  • US industrial production rose 1.1% m/m in November, topping economists’ estimates of a 0.8% gain. Building permits for new homes reached a 12-1/2 year high in the same month. There are no major US data releases scheduled for today.

 

DE30EUR Daily Chart

Source: OANDA fxTrade

  • The Germany30 index looks set to fall for a second straight day today amid Brexit concerns
  • The 55-day moving average has advanced to 12,949 and has also supported prices since October 10
  • The German IFO survey for December is expected to show the expectations index rising to 93.0 from 92.1, according to the latest survey of analysts. ECB’s Lagarde is scheduled to speak today.

 

XAU/USD Daily Chart

Source: OANDA fxTrade

  • Gold has been little changed at the close for the past few sessions and seems to be holding up well given the current positive risk appetite
  • The 55-day moving average is at 1,480.07 and has capped prices on a closing basis since November 4
  • The risks that might push gold to the upside include prolonged concerns about the Brexit timeline, any hiccups in the finalization and ratification of the Phase 1 trade deal and a possible impeachment of US President Donald Trump. Any downside moves could be driven by a firmer US dollar.