Weekend speculation that a U.S.-China trade deal may be close to materializing lifted U.S. indices in early trading this morning. China holds its National Party Congress this week, which could be a good platform to announce a deal.
US30USD Daily Chart
Source: OANDA fxTrade
- The US30 index rebounded on Friday, and has extended those gains in early trading this morning, on speculation U.S. and China are near a deal to end most tariffs
- Resistance at the November high of 26,249 remains intact. Support may be found at the 200-day moving average at 25,109
- The Wall Street Journal reported that the U.S. could lift most, or even all, of its tariffs on Chinese goods with a summit between U.S. President Trump and Chinese leader Xi Jinping possibly happening later this month. There are no data releases of note today.
DE30EUR Daily Chart
Source: OANDA fxTrade
- The Germany30 index touched a four-month high on Friday as economic data matched, or beat, expectations
- The index may have eyes on the 200-day moving average, which is at 11,855 today
- The Euro-zone final Markit manufacturing PMI reading for February came in at 49.3, better than estimates of 49.2, while the region’s January unemployment rate was a below-forecast 7.8%, unchanged from December. There are no major economic data releases scheduled for today.
CN50USD Daily Chart
Source: OANDA fxTrade
- China shares surged to the highest since April 11 on Friday, and could extend those gains at the open today
- The 61.8% Fibonacci retracement of the January 2018 to January 2019 drop is at 13,109 and could be tested today
- China’s National Party Congress is being held this week where policies will be decided for this year. A solution to the trade tariff standoff would be a welcome reprieve amid a slowing economy.
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