- November 12, 2019
- Posted by: range
- Category: Technical Analysis
The Dow Jones Industrial Average ended the day higher as the market reacted to positive news from Boeing and Walgreens. Boeing stock rose by almost 4% after the company said that it would start 737-Max deliveries in December. It also said that the airline will be ready to restart commercial service in January. The 737-Max plane was grounded after an accident in Ethiopia left more than 200 people dead. Walgreens stock rose by 3.60% after reports said that KKR was preparing a leveraged buyout. This will be the biggest buyout in the United States based on the company’s valuation of more than $50 billion.
Sterling rose yesterday after the Office of National Statistics (ONS) released the GDP data for the third quarter. The economy grew by 1.0% in the quarter, which was lower than the consensus estimates of 1.1%. Industrial production declined by -1.4% while manufacturing production declined by -1.8%. Today, the market will receive employment data from the UK. The unemployment rate is expected to remain unchanged at 3.9% while the claimant count change is expected to increase from 21.1k to 24.2k. Wage growth is expected to remain unchanged at 3.8%. The market also reacted to news that Nigel Farage’s Brexit party would not stand in Tory seats, which provided a boost to Boris Johnson.
Focus today will be in New York, where Donald Trump is expected to deliver a speech to members of the Economic Club of New York. The speech will be watched closely because of the ongoing tensions on trade. In a statement last week, the Chinese commerce ministry said that the two countries had agreed to start easing tariffs. The White House and USTR did not endorse or deny the claim. Today, the market will be waiting to hear what Trump will say about the claim. Meanwhile, the market will receive ZEW economic sentiment data from Germany.
The EUR/USD pair dropped slightly in overnight trading as the market waited for a statement by Trump. The pair dropped from 1.1043 to a low of 1.1027. On the hourly chart, the price is slightly below the 14-day and 28-day moving averages. The Relative Strength Index (RSI) has moved from a high of 59 to the current 42. The key points to watch today will be yesterday’s high of 1.1043 and Friday’s low of 1.1015.
The GBP/USD pair rose sharply from a low of 1.2766 to a high of 1.2897, which was slightly above the 61.8% Fibonacci Retracement level. The pair then eased a bit to the current level of 1.2850, which is slightly below the 50% Fibonacci Retracement level. The price is also along the 14-day EMA and slightly below the 28-day moving averages. The pair will likely see some significant movement in either direction after the UK releases its jobs numbers.
The AUD/USD pair declined after the market received business survey numbers from the National Australian Bank. The pair reached a low of 0.6830. On the hourly chart, the pair has been on a downward trend after reaching a high of 0.6930 last week. On the hourly chart, the price is below the 28-day and 14-day moving averages. The RSI has dropped slightly to 33. The pair may likely continue the downward trend, with the next support to watch being 0.6820.