Shares are edging higher in Europe at the beginning of a very special trading session for investors. All eyes are on Jerome Powell today, as the FED chief is to give opening remarks that will kick-off the Jackson Hole Symposium later in the afternoon. Even if the market has already priced in another 25-basis points rate cut by the FED, investors may still be surprised and/or disappointed today as the latest round of U.S. economic data, which was stronger than expected, might mix the cards on the table. In addition, 3 policy makers at the FED have already showed resistance to lower interest rates as they think more dovishness is not in line with the current state of the U.S. economy.
Photo by Pawel Czerwinski.
Photo by Medhat Dawoud F.
For now, all EU benchmarks are trading higher with every sector in green territory. The tech stocks are performing particularly well this morning, after the EU announced the creation of a EUR 100 billion fund to boost EU-based tech companies in order to compete with U.S. and Chinese giants like GOOGLE; APPLE or even ALIBABA.
In addition to the Jackson Hole meeting, traders will also pay attention to the G7 summit in Biarritz, France, where world leaders will be discussing the global economic slowdown as well as Brexit. Comments could trigger volatility spikes on GBP and EUR.
So far, the Stoxx-50 index is trading higher but remains capped by the strong 3,400.0pts resistance. A clearing of this zone could lead the market to 3,440.0pts and 6,490.0pts by extension while a failure below 3,400.0pts likely to send prices back to 3,360.0pts.
While a student, Pierre Veyret had a passion for the financial markets. At the time, he studied International Trade through the setting up of import / export operations and it was the techniques of hedging against exchange rate risks that helped him to make the link with the financial markets, and all especially that of Forex. It is therefore with the aim of anticipating the price of currencies several months in advance that Pierre quickly turned to different methods of analysis by drawing inspiration and surrounding himself with experts in the field. Shortly after, Pierre decided to specialize in Technical Analysis, a discipline he had the opportunity to practice with real market professionals, thanks to AFATE / IFTA, an association of which he has been an active member for several years. Pierre Veyret is passionate about the field of the financial industry with a particular interest in the various techniques of stock market forecasting. Currently, Pierre is based in the City of London where he works as Chief Analyst. He performs regular interventions on a multitude of asset classes through various media (television, internet and print media).
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© 2019 High Leverage FX - All Rights Reserved.