Daily Markets Broadcast August 1, 2019
It was no surprise that the Fed cut its benchmark rate by 25bps yesterday, but Powell’s comments that it may not be the start of a long-term easing cycle sparked a sell-off across the board. US and China concluded this round of trade talks. The next round will be in Washington early September.
US30USD Daily Chart
The index fell the most in 2-1/2 months after Powell’s comments, touching the lowest in three weeks.The index is heading toward the 55-day moving average at 26,417, which has supported prices on a closing basis since June 6.The start of a new month sees the release of the ISM manufacturing PMI for July. It’s seen improving to 52.0 from 51.7, though the for the same month released yesterday showed a dramatic drop to the lowest level since December 2015.
DE30EUR Daily Chart
The index closed higher yesterday, helped by strong from Airbus.The index tested support at the 100-day moving average at 12,099, which held on a closing basis, as it has done since February 14.The final reading of the for July is due today and is expected to be revised higher to 45.4 from 43.1 at the first estimate. The Euro-zone equivalent is seen holding steady at 46.4.
WTICOUSD Daily Chart
prices closed lower yesterday after earlier touching two-week highs as Powell’s comments muddied the outlook on rates, which caused demand expectations to be scaled backPrices are currently trapped between the 100-day moving average resistance at $59.176 and 55-day moving average support at $56.839WTI fell yesterday despite the s weekly stockpiles data showing another hefty drawdown in the week to July 26. The deficit was 8.5 million barrels, well above economists’ forecasts of a 2.6 million shortfall.
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