News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View more
Real Time News
  • What is your forex trading style? Take the quiz and find out:
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 92.78%, while traders in France 40 are at opposite extremes with 82.59%. See the summary chart below and full details and charts on DailyFX:
  • Forex Update: As of 04:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.53% 🇨🇦CAD: 0.12% 🇦🇺AUD: 0.11% 🇪🇺EUR: 0.06% 🇨🇭CHF: 0.02% 🇯🇵JPY: -0.02% View the performance of all markets via
  • Indices Update: As of 04:00, these are your best and worst performers based on the London trading schedule: Germany 30: 0.19% France 40: 0.16% FTSE 100: 0.15% US 500: -0.10% Wall Street: -0.10% View the performance of all markets via
  • Wall Street Futures Update: Dow Jones (-0.07%) S&P 500 (-0.08%) Nasdaq 100 (+0.002%) [delayed] -BBG
  • Dow Jones Rebound May Lift APAC Stocks, Alibaba Earnings Miss
  • Listen to my thoughts about OCBC, UOB earnings via MoneyFM podcast with Ryan Huang this morning:
  • *Dalilah Still in awe!
  • and Daliah Muhammad too, both broke the word record Unreal!
  • If you’re not watching the #Olympics you just missed an incredible performance by Sydney McLaughlin, one for the ages
Risk Assets Rejoice on New Trade Talk Hopes and Strong US Manufacturing Despite Weak Consumer Sentiment

Risk Assets Rejoice on New Trade Talk Hopes and Strong US Manufacturing Despite Weak Consumer Sentiment

Rich Dvorak, Analyst

Talking Points:

  • US stocks are hitting fresh highs on more positive developments over the US-China trade war
  • Strong manufacturing data puts US equity and dollar bulls in a good mood
  • University of Michigan Consumer Sentiment drops to lowest level since November 2016

The US stock market gapped up around half a percent this morning as American equities carry over positive momentum from the Asian and European trading sessions. Price action comes on the back of yesterday’s headline that the White House was contemplating a reduction in tariffs on Chinese trade only to be contradicted by a Treasury Department spokesperson which initially caused stocks to gyrate.

Now, fresh news is just coming out that China may offer a path to eliminate the trade imbalance with the United States sending stocks soaring to intraday highs. Sources are now saying that China is offering a 6-year planned import boost to sweeten the pot for a trade deal. Risk assets that benefit from positive Trade War developments like the Dow Jones is celebrating on the news.


US Dow Jones Index Price Chart January 18, 2019

Stocks were already doing well in early trading as strong US Manufacturing Data casted a shadow over weaker than expected Consumer Sentiment. Manufacturing Production notched a 1.1% increase for December, far surpassing expectations of a modest 0.3% rise.

On the other hand, University of Michigan’s Consumer Sentiment Survey for January plummeted to 90.7 which is the lowest in 27 months as a whirlwind of risks ranging last month’s stock selloff, the US Government Shutdown and Brexit just to name a few lurk in the back of consumers’ minds.

Although, this was quickly cast aside after the positive developments on the US-China trade war front. The US Dollar Index was also gaining ground from the positive hard economic data and trade war headlines this morning.


US Dollar Index DXY Price Chart January 18, 2019


Written by Rich Dvorak, Junior Analyst for DailyFX

Follow on Twitter @RichDvorakFX

Check out our Education Center for more information on Currency Forecasts and Trading Guides.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.