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Wall Street advances as Trump delays Mexico tariffs
Wall Street indices look set for gains today after US Prsident 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 US jobs report on Friday raised expectations of a shift to an easing bias from the Fed.
US30USD Daily Chart
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 US 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
The Germany30 index rose to the highest in nearly two weeks in early trading this morning, taking its cue from the move in US 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
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 January 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.
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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