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.

0

Notifications

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

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
Oil - US Crude
Bullish
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
More View more
Real Time News
  • The Federal Reserve System (the Fed) was founded in 1913 by the United States Congress. The Fed’s actions and policies have a major impact on currency value, affecting many trades involving the US Dollar. Learn more about the Fed here: https://t.co/ADSC4sIHrP https://t.co/s4lZWdJoXV
  • The US Dollar Index traded higher last week, sustaining its broader uptrend. Conflicting technical signals urge caution, but the directional bias remains skewed to the upside. Get your weekly USD technical forecast from @FxWestwater here: https://t.co/jcwhcsUBEN https://t.co/tKrlrRZlZn
  • Technical analysis of charts aims to identify patterns and market trends by utilizing differing forms of technical chart types and other chart functions. Learn about the top three technical analysis tools here: https://t.co/KDjIjLdTSk https://t.co/MGy9OTXpUI
  • The Australian Dollar still remains vulnerable as it extends losses against its major counterparts. What is the road ahead for AUD/USD, AUD/JPY, AUD/NZD and AUD/CAD? Get your AUD technical forecast from @ddubrovskyFX here: https://t.co/ph20zFv4qS https://t.co/v4g9ATf4rr
  • The ISM manufacturing index plays an important role in forex trading, with ISM data influencing currency prices globally. Learn about the importance of the ISM manufacturing index here: https://t.co/Xr3xtoFpZy https://t.co/De69mTseZN
  • Take a closer look visually at the most influential global importers and exporters here: https://t.co/G58J1dg6y3 https://t.co/D7AeTM5OpH
  • EUR/USD tumbled last week on the day of the ECB’s latest policy announcement, and that weakness is set to continue this week as a flood of major Eurozone economic statistics is released. Get your weekly Euro forecast from @MartinSEssex here: https://t.co/9B4rJnzWuz https://t.co/ENF3xlkuyP
  • Trading bias allows traders to make informative decisions when dealing in the market. This relates to both novice and experienced traders alike. Start learning how you may be able to make more informed decisions here: https://t.co/rz7fqi8ZEe https://t.co/Gps2Xp32h9
  • Greed is a natural human emotion that affects individuals to varying degrees. Unfortunately, when viewed in the context of trading, greed has proven to be a hindrance more often than it has assisted traders. Learn how to control greed in trading here: https://t.co/kODPAfJE79 https://t.co/hftCEho1lM
  • Gold price action is primed for volatility next week with the Fed decision on deck. How real yields and the US Dollar react to fresh guidance from Fed officials will be key for gold outlook. Get your weekly gold forecast from @RichDvorakFX here: https://t.co/MzaIl7tPmZ
DAX Soars with BMW, VW, Daimler on Auto Tariff Delay Report

DAX Soars with BMW, VW, Daimler on Auto Tariff Delay Report

Rich Dvorak, Analyst

DAX AND TRUMP AUTO TARIFFS – TALKING POINTS

  • Reports crossed the wires this morning that US President Trump will delay his decision on whether to levy tariffs on autos
  • DAX jumped close to 2 percent on the news, dragged higher by auto makers BWM, Volkswagen and Daimler
  • Interested in trading stocks? Learn How to Trade DAX 30 or download the free Q2 DailyFX Equity Forecast for detailed analysis

The DAX 30 printed a sizable move to the upside during Wednesday’s session following reports that President Trump will delay his decision on whether or not to raise tariffs on auto imports into the United States. Trump is rumored to favor a delay on his verdict for up to 6 months per the Section 232 review process which allows the US to impose taxes (tariffs) on imported goods labeled as a threat to national security.

While markets reacted to the news quite positively, it remains unconfirmed by Trump himself or senior staff members of his administration. Although, speculation has built up in favor of the argument that President Trump is unlikely to wage a trade war on multiple fronts considering the US is already preoccupied with China trade talks breaking down and finalizing the pending USMCA deal with Canada and Mexico.

DAX PRICE CHART: 15-MINUTE TIME FRAME (MAY 15, 2019 INTRADAY)

DAX Price Chart Reaction to Trump Auto Tariff News

With the US auto tariff threat apparently fading – or at least taking the back seat for now – German auto makers like BMW, Volkswagen and Daimler unsurprisingly spiked higher. Shares in the car companies initially rose 6.6 percent, 5.9 percent and 5.3 percent respectively following the auto tariff delay headlines. Considering these 3 companies comprise roughly 10 percent of the DAX 30 Index and that the US is the EU’s largest market for auto exports, the German stock market soared nearly 2 percent from the 11,875 price level to 12,100.

DAX PRICE CHART: WEEKLY TIME FRAME (NOVEMBER 20, 2017 TO MAY 15, 2019)

DAX Price Chart

Today’s bounce in the DAX is helping solidify technical support posed by the bullish uptrend formed from the series of higher lows recorded this year. Also, the gains helped the index reclaim the psychological 12,000 price which looks to continue serving as a zone of confluence along the 50 percent retracement level.

With the DAX back above this area, prices could find some footing here and continue higher. However, with the auto tariff delay report still unconfirmed by President Trump in addition to disappointing economic data out of China and the US, speculative winds have the potential of turning into a “buy the rumor sell the news” scenario.

- Written by Rich Dvorak, Junior Analyst for DailyFX

- Follow @RichDvorakFX on Twitter

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

DISCLOSURES