Wall Street gains on trade talk hopes
Wall Street shrugged off a deeper-than-expected correction to Q4 GDP growth to close near the day’s highs amid hopes for progress in the U.S.-China trade negotiations in Beijing.
US30USD Daily Chart
Source: OANDA fxTrade
- The US30 index rose yesterday and has posted further gains in early trading today. The index is testing the weekly highs
- The index is still above the 55-day moving average at 25,364, which has underscored prices since Jan. 23
- U.S. Q4 growth slowed to +2.2% y/y, a deeper revision than the 2.4% analysts had expected. Today’s data releases include the January personal consumption expenditure prices index and new home sales for February.
DE30EUR Daily Chart
Source: OANDA fxTrade
- The Germany30 index looks set for a week of daily gains this week as it builds on yesterday’s advance in early trading today
- The index is tracking the 55-day moving average higher, as it has done all week. The average is now at 11,338
- Germany’s inflation rate came in below estimate in March, which helped sentiment. Today’s data slate includes German import prices and retail sales for February together with the unemployment rate for March.
WTICOUSD Daily Chart
Source: OANDA fxTrade
- Crude oil prices suffered a short-term slump yesterday after US President Trump tweeted that OPEC should increase production. West Texas Intermediate fell 2% before a strong rebound ensured a positive close
- Prices are still confined by the 200-day moving average above at 61.647 and the 55-day moving average below at 55.531. Prices have struggled to regain the $60 handle on a sustained basis with the 50% retracement of the October-December drop at 59.653
- US President called on OPEC to increase oil flow, saying prices are too high. Today sees the release of the weekly Baker-Hughes US oil rig count. It has been trending lower for the past five weeks and was at 824 last week.