Dovish comments from the Fed’s Williams helped US indices rebound from early losses, with solid economic data also helping. The US shot down an Iranian drone in the Straits of Hormuz while UK parliament voted for a Brexit amendment that would make it more difficult for the PM to force through a no-deal Brexit.
US30USD Daily Chart
Source: OANDA fxTrade
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The US30 index rebounded from the week’s lows after Williams said the Fed should be aggressive when confronted with an adverse outlook. Speculation increased that a 50bps cut might be delivered at this month’s meeting
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The 100-day moving average at 26,146 and the 55-day average at 26,211 continue to track each other higher
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The Philadelphia Fed manufacturing survey surged this month, rising to 21.8, the highest in nine months. Today we see the Michigan consumer sentiment for July, which is seen improving to 98.5 from 98.2 in June.
DE30EUR Daily Chart
Source: OANDA FxTrade
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The Germany30 index fell for a second straight day yesterday amid weak earnings reports
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The index fell to the lowest in just over three weeks, testing the 55-day moving average support at 12,202
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Germany’s producer prices are expected to fall 0.2% m/m in June, the latest survey of economists suggests. That would be the lowest reading in six months.
WTICOUSD Daily Chart
Source: OANDA fxTrade
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Crude oil prices fell for a fifth consecutive day yesterday, despite an increase in Middle East tensions after the US reported it had shot down an Iranian drone
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WTI is heading toward the 61.8% Fibonacci retracement of the June-July rally, which is at $54.48
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The EIA is revising its 2019 global oil demand to 1.1 million barrels per day (bpd) from its 1.2 million forecast just last month, adding that it may cut it further if the global economy, and especially China, shows further weakness.
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