Morning News – 18.10.2019

By 18/10/2019News
Morning Stock News

Gold   1491,72
(0%)

EURUSD   1,1125
(-0,01%)

DJIA   26949,50
(– 0,17%)

OIL.WTI  53,92
(– 0,28%)

DAX   12636,90
(– 0,16%)

USD is down for the 6th day in a row – and now it broke through the key support line represented by the 200-day moving average. Lots of news and volatility for the pound today. Oil reserves are up by 9 million barrels, but it didn’t cause its price to fall.

DAX30 Daily-Chart

morning-news-18.10.2019

In the first half of the day, we learned that the EU and the UK have reached a deal (just as we predicted yesterday). As the news went live, the pound shot up almost to 1.30. That was the end of good news, though. After all, Theresa May reached a deal, too, but the Parliament would have none of it.
This time, too, the Parliament wanted to have the last word, with representatives of many parties claiming they won’t support the deal. This news caused the pound to fall by 2.5 points, though it did recover somewhat. Everyone’s waiting for the vote on Saturday. Therefore, we should expect a large gap in either direction on Monday.

EURUSD

Euro, too, benefited from the news and continued its short-term upward trend. It grew past 1.11, and there seems to be no grounds for a reversal. Especially if the Brexit deal gets approved over the weekend.

GOLD

Gold crashed after this morning’s Brexit news, but then started growing again. Investors were only too happy to buy the suddenly cheap asset. They are hedging this weekend’s risks, not knowing where the markets will open on Monday.

INDICES

Stock indices demonstrated a similar dynamics – fast growth followed by a correction. The Brexit overshadowed even the US-China trade talks.

What’s next?

The EU summit on Brexit continues
04.00 China: gross domestic product data
16.00 A statement by the chief executive of the Federal Reserve Bank of Kansas Esther George
17:00 A statement by the Dallas Federal Reserve Bank President Robert Kaplan

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