FOREX
The US dollar is trading almost flat in relation to other major currencies as the European session gets underway. The greenback has been trading within a narrow range since the second part of last week, as traders pause for breath after the 3.7% dollar index oscillation that preceded the current calm. These wide variations were driven by shifting expectations on the timing and scope of the Fed’s rate cuts. Against this background, investors will look ahead to the release of US PMI data on Wednesday and GDP figures the following day. Both events carry the potential to trigger significant market moves on the dollar. Until then, currency traders will look elsewhere, with the Bank of Japan meeting, which starts today and could potentially (but not probably) bring to an end the extended period of negative rates, likely to be the centre of attention until mid-week when US data will surely reclaim the spotlight.
Ricardo Evangelista – Senior Analyst, ActivTrades
Source: ActivTrader
EUROPEAN SHARES
Shares climbed at the beginning of a new week in Europe amid increasing appetite for risk ahead of significant macro developments.
The bullish sentiment registered at the end of last week persists, as optimism is back on track, with more and more investors believing the bearish correction is now over for stocks.
Rate cuts bets are coming back into investors’ minds after the latest batch of macro data in Europe and the US raised the prospect of “soft-landing” for many.
However, more major economic news is awaited this week, and the EU consumer confidence, EU UK and US PMI, and US GDP, alongside earnings reports from Netflix, Tesla and LVMH, are likely to bring their share of market volatility.
It will be interesting to see how EU markets will react to the decision on rates and the press conference from the ECB on Thursday, as many will await President Christine Lagarde’s speech to provide them with more clues on the Central Bank’s next move.
Meanwhile, the STOXX-50 trades higher outside its mid-term bearish channel, not far from the 4,500.0pts resistance. All sectors are up, with the best performances being brought by tech and financial stocks.
Pierre Veyret – Technical analyst, ActivTrades
Source: ActivTrader
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and as such is to be considered to be a marketing communication.
All information has been prepared by ActivTrades (“AT”). The information does not contain a record of AT’s prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not a reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acting on the information provided does so at their own risk.