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.

Free Trading Guides
EUR/USD
Bullish
GBP/USD
Bullish
USD/JPY
Bullish
Gold
Mixed
Oil - US Crude
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Bitcoin
Bullish
More View more
Real Time News
  • The inside bar pattern occurs regularly within the financial markets. Incorporating the inside bar strategy within a trading system can enhance a trader’s market analysis technique. Find out how you can use it from @WVenketas here: https://t.co/E3EWOYTYNw https://t.co/ZCT4pwc6nv
  • Greed has proven to be a hindrance more than assistance for traders. How does greed impact your trading? Find out from @RichardSnowFX here: https://t.co/aT8TZjlFqP https://t.co/C4vrTm69sE
  • Central bank independence has several advantages and disadvantages. Find out what they are in-depth with @MartinSEssex here: https://t.co/wVFXbbTxf1 https://t.co/WkwZK6wtzy
  • The $GBPUSD may be carving out a 4-year bearish candlestick pattern as the $EURGBP downtrend prolongs. GBP/JPY may rise but be wary of #Brexit risks clouding technical analysis. Get your GBP market update from @ddubrovskyFX here: https://t.co/wzV4fygKWe https://t.co/hpDmrh0LLo
  • Get your technical setups for the British Pound ahead of the key #Brexit vote in Parliament this weekend here $GBPUSD $EURGBP $GBPJPY - https://www.dailyfx.com/forex/technical/article/fx_technical_weekly/2019/10/19/GBPUSD-EURGBP-GBPJPY-Technical-Analysis-Amid-Brexit-Deal-Vote.html?CHID=9&QPID=917702 https://t.co/TBdvAY6GN2
  • The Australian Dollar could reverse gains if #Brexit is forced to be delayed. Global growth slowdown woes and other fundamental risks may also undermine $AUDUSD upside progress. Get your $AUD market update from @ddubrovskyFX here: https://t.co/VAs2C3cpQj https://t.co/9mqJ0DSLZZ
  • Here is my trading video for the week ahead: '$EURUSD, #Pound, Volatility - The Biggest Risks and Opportunities Ahead' https://www.dailyfx.com/forex/video/daily_news_report/2019/10/19/EURUSD-Pound-Volatility---The-Biggest-Risks-and-Opportunities-Ahead-.html
  • $GBPUSD is on the verge of pushing above five-year resistance. A break above with follow-through may precede considerable upside movement. Get your GBP/USD market update from @ZabelinDimitri here: https://t.co/0qfh7TRWJn https://t.co/GImIwuGodX
  • The $AUD may resume its downtrend while the #ASX 200 stock index powers higher as dovish monetary policy drives interest rates lower. Get your market update from @IlyaSpivak here: https://t.co/UPlHZrt6c2 https://t.co/EIIf9xackw
  • (Fundamental Forecast) Australian Dollar Could Wilt if Brexit Delayed, Growth Risks Hang $AUDUSD #Brexit - https://www.dailyfx.com/forex/fundamental/forecast/weekly/aud/2019/10/19/Australian-Dollar-Could-Wilt-if-Brexit-Delayed-Growth-Risks-Hang.html?CHID=9&QPID=917702 https://t.co/2aOYhblN3g
Dow Jones Outlook: Index Eyes Next Brexit Vote, Boeing Developments

Dow Jones Outlook: Index Eyes Next Brexit Vote, Boeing Developments

2019-03-12 21:30:00
Peter Hanks, Junior Analyst
Share:

Dow Jones Outlook Talking Points:

  • The Dow Jones will look to the next Brexit vote which could see the UK fall out of the European Union without a deal
  • Boeing developments will further influence the index as the corporate-giant wrestles safety concerns
  • Looking to take your trading to the next level? Check out our free Advanced Trading Guides.

Dow Jones Outlook: Index Eyes Brexit Vote, Boeing Developments

As the Dow Jones heads into Wednesday trading, the index will likely take its cues from Brexit proceedings and the developing situation with the Industrial Average’s largest member, Boeing. Tuesday saw UK MPs overwhelmingly vote down Prime Minister Theresa May’s revised Brexit deal. While the outcome was largely expected, the result delays a decision and prolongs uncertainty for European equities.

In the unlikely event the vote to exit the Union without a deal is passed tomorrow, it would likely deliver a shock to global equities. Given their proximity and degree of interconnectedness, European and North American equities could experience high levels of volatility on such an outcome.

See how IG clients are positioned on the Dow Jones, S&P 500 and the US Dollar with our free IG Client Sentiment Data.

As for domestic concerns, traders will continue to watch Boeing (BA) and developments from the investigations by the Federal Aviation Administration (FAA) and the company itself. Boeing has dragged the index lower since Monday when a Boeing 737 Max 8 crashed, marking the second such incident in the last five months. As one of the newer models offered by Boeing, the incidents have triggered concerns regarding the plane’s safety. Boeing shares reacted accordingly and suffered their worst two-day loss since 2001.

Dow Jones Price Chart: Daily Time Frame (January 2019 – March 2019) (Chart 1)

dow jones daily price chart and boeing price chart

Dow Jones Price Chart overlaid with Boeing (BA) in blue

While the ongoing Boeing situation is not necessarily significant from a macroeconomic perspective, the corporation is afforded significant weight in the Dow Jones Industrial Average. Further, it is the largest US manufacturer. Given the weight commanded by Boeing, it can exert considerable influence over the index.

Dow Jones Component Weightings (Chart 2)

dow jones weighting chart

As of Tuesday’s open, Boeing accounted for 10.57% of the Dow. Should the FAA follow other aviation governing bodies in Europe, and parts of Asia and ground the model, Boeing could continue to drag the Dow lower. Since Monday, the Dow has been the worst performing major US index.

Dow Jones Price Chart: 3-Minute Time Frame (March 11-12, 2019) (Chart 3)

Dow Jones, nasdaq, russell, S&P 500 price chart

The Industrial Average will also await US durable goods orders from January. With durable goods categorized as longer-lasting products, the manufacturing and industrial components of the index may experience greater sensitivity to the data print than other sectors.

--Written by Peter Hanks, Junior Analyst for DailyFX.com

Contact and follow Peter on Twitter @PeterHanksFX

Read more: Stock Market Fund Flows: S&P 500 Retreat Sparks Demand for Defensives

DailyFX forecasts on a variety of currencies such as the US Dollar or the Euro are available from the DailyFX Trading Guides page. If you’re looking to improve your trading approach, check out Traits of Successful Traders. And if you’re looking for an introductory primer to the Forex market, check out our New to FX Guide.

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

DISCLOSURES

News & Analysis at your fingertips.