Wall Street Advances To Five-Week High
Hopes for a solution to the U.S. government shutdown and progress in the U.S.-China trade negotiations helped U.S. indices power to the highest levels since mid-December on Friday. China Q4 GDP data are on tap today, which could determine near-term direction, while GBP traders await PM May’s alternative Brexit proposals.
US30USD Daily Chart
Source: OANDA fxTrade
- The US30 index climbed to the highest level since December 3, extending gains to the fourth week, as U.S. President Trump prepared to announce a proposal to end the government shutdown. The proposal was immediately panned by both sides and branded a non-starter by House Speaker Pelosi. U.S. indices look to be edging lower in early trading today
- The index is approaching the congestion area of the 61.8% Fibonacci retracement of the October-December drop at 24,932 and the 200-day moving average at 24,975
- Today is a U.S. bank holiday commemorating Martin Luther King’s birthday.
DE30EUR Daily Chart
Source: OANDA fxTrade
- The Germany30 index posted the biggest one-day gain since January 4 on Friday, hitting the highest level since December 5
- The 55-day moving average at 11,084 was breached for the first time since September 28. The 100-day moving average is at 11,506
- German producer prices are expected to drop 0.1% m/m in December, the first monthly decline since February last year, potentially reducing pressure on the central bank to hike rates.
CN50USD Weekly Chart
Source: OANDA fxTrade
- The China50 index closed at its highest level since December 14 on Friday, buoyed by Wall Street sentiment
- The index nearly touched the 200-week moving average at 11,146 last Friday but closed above the 100-day moving average at 11,069 for the first time since December 3
- The Chinese economy is seen expanding 6.4% y/y in Q4, the slowest growth since Oanda records began in 2010. On Friday, 2017’s full-year growth was downgraded to 6.8% from 6.9%, which could help make the 2018 numbers look a bit better.