FOREX
The US dollar is losing ground to the yen in early Tuesday trading. Over the last two weeks, the yen has recovered more than 3.5% against the greenback, thanks to a combination of market intervention by Tokyo's authorities and shifting expectations among traders. Reports of currency buying by Japanese authorities helped support the yen after it touched a multi-decade low. Subsequently, Japanese politicians have maintained a tough stance, publicly expressing discomfort with the Bank of Japan's monetary policy and pushing for a rise in interest rates. With expectations moving in the opposite direction in the US, where the Fed's next move is almost certainly a rate cut, there may be scope for further gains for the Japanese currency.
Ricardo Evangelista – Senior Analyst, ActivTrades
Source: ActivTrader
EUROPEAN SHARES
Stocks traded sideways in Europe on Tuesday, and market sentiment remains muted as investors brace for a slew of earnings reports from the Tech sector later today. The STOXX-50 index has opened slightly lower, and risk appetite took a break following yesterday’s strong bullish sentiment.
All sectors are in the red, except for tech shares, which are registering a strong 1.37% performance so far, carried by optimism regarding the upcoming batch of corporate results from the “magnificent seven” in the US. Alphabet and Tesla will kick off the earnings season for tech, with reports due after the closing bell today, while European stock investors are likely to keep their focus on the luxury sector with LVMH’s results.
We expect market volatility to find its way through the markets this week., as investors digest a significant number of corporate and macro developments. The STOXX-50 index still struggles to clear the 4,900pts resistance, and investors are likely to wait for further bullish catalysts before taking the market to new highs.
Pierre Veyret – Technical analyst, ActivTrades
Source: ActivTrader
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