|

Wall Street steadies after a strong week

US indices consolidated a bullish week on Friday, though the ongoing US government shutdown capped sentiment. A Japan holiday today could impact liquidity in the Asian session. China releases trade data for December, which could dictate near-term direction.

US30USD Daily Chart

Source: OANDA fxTrade

  • The US30 index posted its biggest weekly gain since late-November last week, buoyed by a dovish shift from the Fed

  • The 61.8% Fibonacci retracement of December’s drop is at 24,308, while the 55-day moving average has edged lower to 24,411

  • US consumer prices matched expectations in December, falling 0.1% m/m, the first decline in nine months. There are no major data releases today but markets will be keeping an eye on the US government shutdown situation.

DE30EUR Daily Chart

Source: OANDA fxTrade

  • The Germany30 index snapped a three-day winning streak on Friday as the UK’s looming parliamentary Brexit vote (tomorrow) dented sentiment

  • The 55-day moving average at 11,098 looks as if it might continue to cap the recent upmove, as the slow stochastics momentum indicator turns bearish

  • Euro-zone industrial production data for November is due today. It’s expected to decline 1.0% m/m and a worse number could suggest a near-term top is in place for German equities.

CN50USD Daily Chart

Source: OANDA fxTrade

  • China shares rose four out of five days last week, the third weekly advance in a row, as trade talk hopes increased

  • The 55-day moving average is at 10,916. The index has traded below this average since December 13

  • China’s trade data for December are due today. Imports are expected to increase to 5.0% y/y from +3.0% in November, while export growth is seen slowing to +3.0% from +5.4%.

Author

Andrew Robinson

Andrew Robinson

MarketPulse

A seasoned professional with more than 30 years’ experience in foreign exchange, interest rates and commodities, Andrew Robinson is a senior market analyst with OANDA, responsible for providing timely and relevant market commentar

More from Andrew Robinson
Share:

Editor's Picks

EUR/USD hovers around nine-day EMA above 1.1800

EUR/USD remains in the positive territory after registering modest gains in the previous session, trading around 1.1820 during the Asian hours on Monday. The 14-day Relative Strength Index momentum indicator at 54 is edging higher, signaling improving momentum. RSI near mid-50s keeps momentum balanced. A sustained push above 60 would firm bullish control.

GBP/USD holds medium-term bullish bias above 1.3600

The GBP/USD pair trades on a softer note around 1.3605 during the early European session on Monday. Growing expectation of the Bank of England’s interest-rate cut weighs on the Pound Sterling against the Greenback. 

Gold sticks to gains above $5,000 as China's buying and Fed rate-cut bets drive demand

Gold surges past the $5,000 psychological mark during the Asian session on Monday in reaction to the weekend data, showing that the People's Bank of China extended its buying spree for a 15th month in January. Moreover, dovish US Federal Reserve expectations and concerns about the central bank's independence drag the US Dollar lower for the second straight day, providing an additional boost to the non-yielding yellow metal. 

Bitcoin, Ethereum and Ripple consolidate after massive sell-off

Bitcoin, Ethereum, and Ripple prices consolidated on Monday after correcting by nearly 9%, 8%, and 10% in the previous week, respectively. BTC is hovering around $70,000, while ETH and XRP are facing rejection at key levels.

Weekly column: Saturn-Neptune and the end of the Dollar’s 15-year bull cycle

Tariffs are not only inflationary for a nation but also risk undermining the trust and credibility that go hand in hand with the responsibility of being the leading nation in the free world and controlling the world’s reserve currency.

Bitcoin, Ethereum and Ripple consolidate after massive sell-off

Bitcoin, Ethereum, and Ripple prices consolidated on Monday after correcting by nearly 9%, 8%, and 10% in the previous week, respectively. BTC is hovering around $70,000, while ETH and XRP are facing rejection at key levels. Traders should be cautious: despite recent stabilization, upside recovery for these top three cryptocurrencies is capped as the broader trend remains bearish.