European benchmarks were little changed for the last trading session of the week as uncertainty continues. Although the ECB held its rates and provided investors with extended purchase programs (APP and PEPP) yesterday, no significant immediate impact has been recorded on stock prices as the move was already largely priced in. Christine Lagarde’s statement that the ECB will keep supporting the EU economy until inflation gets closer to its 2% target, is positive for investors. However, traders will still have to deal with a highly volatile environment as valuation issues linger in some sectors. In addition, as Europe becomes a virus hotspot again, there are concerns over renewed lockdowns measures that would severely impact demand in many market areas.
Nonetheless, the fact most benchmarks still have not broken-out any major support levels indicates Bull traders are still present, which could mean that this week’s downward trends are corrective and not a reversal. More volatility is expected today as traders cautiously await comments from some central bankers, as well as the US CPI release later in the afternoon. In the UK, the FTSE-100 index still benefits from Sterling’s drop due to frayed talks with the rest of the EU over the Internal Market Bill question.
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.