Wall Street indices look set for gains today after U.S. President Trump announced late Friday that he would suspend the Mexico tariffs that were due to be imposed today. G-20 warned of escalating hazards from trade and geopolitical tensions. The weak U.S. jobs report on Friday raised expectations of a shift to an easing bias from the Fed.
US30USD Daily Chart
Source: OANDA fxTrade
- The US30 index looks set to rise for a sixth straight day following Trump’s move after Mexico agreed to take a tougher stance on immigration
- The index touched the highest since May 7 this morning, a 6.6% rebound from the near-term low on June 3. The index is testing the 78.6% Fibonacci retracement of the April-June drop at 26,226
- The U.S. economy added just 75,000 jobs in May, the least in three months and well below survey expectations of a 185,000 increase. Expectations for Fed rate cuts sooner rather than later rose.
DE30EUR Daily Chart
Source: OANDA fxTrade
- The Germany30 index rose to the highest in nearly two weeks in early trading this morning, taking its cue from the move in U.S. indices
- The index is rising toward the 61.8% Fibonacci retracement of the May-June drop at 12,131
- The Euro-zone Sentix investor confidence index is expected to tumble to 1.4 in June from 5.3 in May, according to the latest survey of economists.
CN50USD Daily Chart
Source: OANDA fxTrade
- The CN50 index snapped a three-day losing streak on Friday, buoyed by the gains on Wall Street. Weekend protests in Hong Kong may negatively impact the opening today
- The index is holding above the 100-day moving average at 12,657, as it has done on a closing basis since Jan. 23
- China trade numbers for May are due today with exports seen falling 3.8% y/y, the second monthly contraction in a row, while imports are expected to fall 3.8% y/y.