Wall Street edges lower despite above forecast GDP data
GDP growth data beat economists’ estimates in the fourth quarter, but the improvement failed to prevent a slide on Wall Street. PMI readings feature heavily on the data calendar, with both German and Eur-zone numbers seen at multi-year lows.
US30USD Daily Chart
The US30 index declined yesterday but failed to take out Wednesday’s low, which might suggest today may be an uneventful day
Resistance at the November high of 26,249 remains intact. Support may be found at the 200-day moving average at 25,101
The ISM manufacturing PMI for February could be the highlight on the US data calendar. It rebounded in January, but this month’s print is expected to ease off to 55.5 from 56.6, the latest survey shows.
DE30EUR Daily Chart
The Germany30 index edged higher yesterday, keeping within a tight 11,399-11,558 range so far this week
The index is still struggling to overcome the December high at 11,571. Trendline support may be found near the 11,292 level today, with the 100-day moving average below at 11,207
Final Markit PMI readings for February are due today, with no revision to initial readings expected for the manufacturing PMI for Germany at 47.6 (lowest since December 2012) and the Euro-zone at 49.2 (lowest since June 2013).
UK100GBP Daily Chart
The UK100 index fell for a fourth straight day yesterday, the longest losing streak since late-January, as Brexit uncertainty continues to weigh ahead of key Parliamentary votes later this month
The index fell to a more than three-week low and is possibly eyeing the 100-day moving average at 6,977
Markit’s manufacturing PMI reading for February is seen slipping to 52.0, the weakest in four months, from 52.8 in January. UK govt says Brexit talks with EU ongoing; aiming to ensure that it cannot be held in backstop indefinitely. EU’s Barnier reiterates will not re-open the Withdrawal Agreement for negotiation.