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Wall Street loves Powell
In a speech last night, Fed Chairman Powell reiterated that the central bank could afford to be patient and flexible and wait to see how global events impact the US economy before acting on interest rates. This fueled the fifth day of gains on Wall Street, though not all sectors advanced.
US30USD Daily Chart
The US30 index reached a three-week high yesterday following Powell’s comments, extending the current rally to a fifth day, the longest stretch since last month
The index is edging toward the 61.8% Fibonacci retracement of December’s drop at 24,308. The 55-day moving average is at 24,429
US consumer prices for December are due today and are seen falling 0.1% m/m, which would be the first decline in nine months.
DE30EUR Daily Chart
The Germany30 index rose for a third straight day yesterday, echoing the mood on Wall Street
The 55-day moving average at 11,111 remains a significant hurdle for the index to overcome as slow stochastics momentum wanes
ECB’s Villeroy said gradual normalization of ECB policy is still desirable, though the central bank should keep its options open in the face of uncertainty.
AU200AUD Daily Chart
The Australia200 index touched the highest level in nearly two months this morning after November retail sales came in above estimate
The 100-day moving average is at 5,890 and the index has traded below it since October 5
Retail sales rose 0.4% m/m in November, beating economists’ forecasts of a 0.3% gain. That’s the fastest growth in five months.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.
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 commentary and live market analysis throughout the Asia-Pacific region. Having previously worked in Europe, since moving to Singapore he worked with several leading institutions including Bloomberg, Saxo Capital Markets and Informa Global Markets, proving FX strategies based on a combination of technical and fundamental analysis as well as market flow information. Andrew began his career as an FX dealer with NatWest and the Royal Bank of Scotland in the UK.
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