FOREX
The US dollar is starting the week on the back foot, losing ground to other major currencies. Investors are in a wait-and-see mood, with several senior Fed officials scheduled to speak later this week, when January’s FOMC minutes, containing transcripts of the discussions between senior monetary committee officials, are also due for release. The US dollar strengthened since mid-January, as the resilience of the US economy and the persistent inflation it generates, forced many to question the previously assumed rate hike pause after March. A further rate hike in May is now considered increasingly likely, and this week's events are expected to offer more clarity on the likelihood of this scenario, which could have a decisive impact on the greenback's medium-term direction.
Ricardo Evangelista – Senior Analyst, ActivTrades
Source: ActivTrader
EUROPEAN SHARES
Stock market indices rose in Europe and Asia on Monday, on lower trading volumes due to the US President's Day holiday. Benchmarks rose from London to Milan as investors remain optimistic regarding the short to medium-term outlook for equities despite the ongoing debate over the next moves by central banks on interest rates. Investors continue to cheer the solid earnings registered by EU stocks that highlight the market’s resilience to the inflationary and higher borrowing cost environment, while improving economic conditions in the Eurozone are also sustaining market sentiment in the region. Slight declines in the tech and industrial sectors are being offset by strong performances from utilities and basic materials shares and maintaining the STOXX-50 index above 4,275pts. With no major macro news and US stock markets closed, we don’t expect today’s session to be significantly directional. The STOXX-50 keeps trading inside its 120-points wide bullish channel, with the first resistance located slightly above the 47,300pts mark.
Pierre Veyret– Technical analyst, ActivTrades
Source: ActivTrader
Pierre Veyret – технически анализатор, ActivTrades
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