U.S. indices closed marginally lower yesterday on below-average volumes ahead of the Q1 reporting season, which kicks off today. U.K. PM Theresa May obtained a six month Brexit deadline extension. FOMC minutes showed most officials didn’t see the need for a rate hike this year.
US30USD Daily Chart
Source: OANDA fxTrade
- The US30 index edged marginally lower yesterday, recording the fourth down day in five days, after touching a six month high on Friday
- The index is falling toward the 55-day moving average at 25,697
- The Michigan consumer sentiment index is expected to drift down to 98.0 in April from 98.4 in March, adding to the uncertainty surrounding the state of the U.S. economy.
DE30EUR Daily Chart
Source: OANDA fxTrade
- The Germany30 index rose for a second straight day yesterday as the Brexit deadline was pushed back to October
- The index has held above the 23.6% Fibonacci retracement of the March 22 – April 4 rally at 11,856
- Euro-zone industrial production data for February are expected to show a 0.6% contraction following a 1.4% increase in January.
UK100GBP Monthly Chart
Source: OANDA fxTrade
- The U.K. 100 index advanced for the first time in four days yesterday after the Brexit extension
- The index looks on track for the fourth consecutive monthly gain now that the Brexit uncertainty has been pushed back temporarily. That would be the longest winning streak since the December 2017 – March 2017 run
- The EU agreed that the U.K. would keep full membership rights during the extension period, which could end as soon as the Withdrawal Agreement was ratified by Parliament. The U.K. could leave EU before June 30, and would not need to hold EU elections if a deal was reached by May 22.