Wall Street extends gains on tariff postponement
The early news that Trump was to defer the March 1 tariff deadline stayed with equities for most of the day yesterday, prompting further gains though momentum waned into the close. Oil prices tumbled after Trump tweeted they were too high.
US30 USD Daily Chart
Source: OANDA fxTrade
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The US30 index tested the November high yesterday but pared gains to close only marginally in the black. The index has opened flat this morning
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Resistance at the November high of 26,249 remains intact for now. Support may be found at the 200-day moving average at 25,086
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Fed Chairman Powell faces day one of his two-day testimony on the economy and monetary policy before Congress. The Q&A session after the testimony is usually more interesting.
DE30EUR Daily Chart
Source: OANDA fxTrade
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The Germany30 index lost momentum into the close after touching the highest since December 3, buoyed by the shift in the tariff deadline
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The index has started today’s session in negative territory, prompting a decline in the slow stochastics
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We have another confidence indicator published today. This time it’s the GfK survey for March, which is seen steady at 10.8. Other surveys have disappointed recently.
WTICOUSD Daily Chart
Source: OANDA fxTrade
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WTI posted the biggest one-day drop so far this year yesterday after US President Trump tweeted that oil prices were too high and the global economy could not take more price hikes. He called on OPEC to “relax”
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Prices are pivoting around the 100-day moving average at 55.91. The 55-day moving average is at 51.54, and has supported prices on a closing basis since January 17
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The American Petroleum Institute releases weekly crude stocks data as at February 22 later today. Last week saw an addition to stockpiles of 1.26 million barrels.
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.
Andrew Robinson
Senior Market Analyst at 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 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.
Source: MarketPulse