Benchmarks in Europe are struggling to extend yesterday’s gains, which was sparked by optimism about a possible vaccine against Covid-19. However, yesterday’s euphoria is now nuanced by today’s uncertainty as investors brace themselves for the Fed Chairman Jerome Powell’s speech, which will provide them with more clues on the state of the recovery and the next action to be taken by the US central bank. In addition, today’s market sentiment is also being tainted by the deteriorating relationship between the US and China, especially after the Nasdaq exchange unveiled new IPO rules that limited the listing of Chinese companies. Traders expecting a response from Beijing are then likely to limit their exposure to stocks and take any profit following yesterday’s rally. With that in mind, we expect markets to stay volatile but without clear direction until Jerome Powell’s speech.
The FTSE-100 Index is today’s best performer as traders welcomed the government’s announcement of tariff cuts worth £30 billion after Brexit. The market is still trading well above 6,000pts despite a failure below 6,080pts. The bullish movement is slowing down, as shown by the Stochastic indicator, and a fall below 6,030pts could drive prices back to the range between 5,945 to 6,000pts. On the flip side, if the index clears 6,080 then 6,125pts and 6,210pts would be the next targets.
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).
© 2019 High Leverage FX - All Rights Reserved.
© 2019 High Leverage FX - All Rights Reserved.