U.S. President Trump said yesterday he is causing a delay to the U.S.-China trade agreement until China goes back to an earlier agreement. Inflation numbers out of China and the U.S. will be the major events today.
US30USD Daily Chart
Source: OANDA fxTrade
- The US30 index closed slightly lower yesterday, bringing a six-day rally to a halt. The index is little changed in early trading today
- The index has tested the 78.6% Fibonacci retracement of the April-June drop at 26,226 but again failed to close above it. The 55-day moving average is at 25,970 today
- U.S. consumer prices are seen rising 1.9% y/y in May, the latest survey of economists shows, a slower pace than the 2.0% recorded in April. A lower reading could stoke ideas that the Fed may soon be switching to an easing bias.
DE30EUR Daily Chart
Source: OANDA fxTrade
- The Germany30 index touched the highest in three weeks yesterday and extended the recent bull run to a third day. There has been little change since the open this morning
- The index breached the 61.8% Fibonacci retracement of the May-June drop at 12,131 and now has eyes on the 78.6% retracement at 12,272. The 55-day moving average is at 12,017 and has supported prices on a closing basis since June 3
- There are no major data releases for either Germany or the Euro-zone today but ECB speakers are out in force. Speeches from Draghi, De Guindos and Coeure are scheduled.
CN50USD Daily Chart
Source: OANDA fxTrade
- The China50 index advanced for a third consecutive day yesterday but may struggle to extend those gains today following Trump’s overnight comments regarding a trade deal
- The index is testing the 55-day moving average at 13,172, which has capped prices since May 7. The 100-day moving average, now at 12,697, has supported prices on a closing basis since January 23
- CPI in May is expected to rise 2.7% y/y after a 2.5% increase in April, the latest survey of economists shows. Producer prices however are showing more benign tendencies, with a slowdown to +0.6% y/y expected from +0.9% in April.