FOREX
The US dollar recorded some gains in relation to other major currencies at the beginning of the European session. Last Friday’s employment data came up better than expected, revealing resilience in the US labour market, and creating some upside for the greenback. However, gains have been subdued as investors await tomorrow’s release of inflation numbers in the hope that a clearer picture will start to emerge regarding the Federal Reserve’s stance in the second half of the year. Last week the US central bank hiked rates for what many believe will be the last time in the current cycle and tomorrow’s release of CPI figures could reinforce that scenario, should core inflation start to drop.
Ricardo Evangelista – Senior Analyst, ActivTrades
Source:ActivTrader
EUROPEAN SHARES
European shares traded mostly lower on Tuesday, paring some of yesterday’s gain, as poor macro data from China disappointed investors. Risk appetite was down shortly after the opening bell in Europe after traders witnessed imports from the second-biggest economy in the world falling below expectation (-7.9% actual vs -5.0% expected).
This raises concerns about the real economic shape of the nation and the strength of its recovery, while investors also brace for tomorrow’s US Core CPI data, an indicator closely watched by the Fed.
Energy shares are among the top losers so far, as oil markets currently register a bearish correction following three days of sharp gains, but EU stock indexes are being dragged down by all sectors today.
However, on the technical front, today’s correction is not yet threatening as prices pulled back on a newly established floor following the breakout of significant short-term resistances. The STOXX-50 now trades slightly below its first support zone over 4,333.0pts and 4,326.0pts, with the gates to 4,360.0pts still open so far.
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.