European equities surprisingly opened higher following drops in Asian shares overnight where last week’s global risk-off sentiment continues. Bull traders managed to take control of European markets at the opening bell after China, EU’s second largest trading partner, published much-improved industrial production figures for May. However, this initial spike is likely to be short-lived with risk-off sentiment set to continue this week. The outlook remains concerning with the number of new daily coronavirus cases not improving and even worsening in several areas over the weekend and this will offset the recent reassuring macro data from China, the US and even Europe. While volumes get lower as we enter the summer season, volatility spikes are expected as investors brace for a short but busy week with speeches from central bankers and the US jobs report on Thursday, before Friday’s US Independence Day.
The DAX-30 Index currently is one of the eurozone’s most resilient performers today with the market trading well above 12,000pts. However, the technical configuration does not look reassuring as bull traders do not seem to be strong or numerous enough to take prices to new highs. A break-out below the zone between 11,945pts-12,000pts would pose a serious threat to the current mid-term bullish trend and would open the way to a deeper corrective move towards 11,755pts and 11,030pts by extension.
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.